Suppose that we succeed in reducing the federal budget deficit three years in a row.During these three years the national debt will

Question

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Reducing the federal budget deficit means the government is either decreasing its spending or increasing its revenue, leading to a smaller gap between what it spends and what it earns. However, as long as there is a deficit, the national debt will continue to rise because the government is still spending more than it earns, just by a smaller margin each year. Therefore, the rate at which the national debt increases would slow down, or in other words, it would rise at a decreasing rate.

Suppose That We Succeed in Reducing the Federal Budget Deficit