Statement I: If the federal budget deficit goes down,the national debt will go down.
Statement II: Unless we begin to reduce the national debt,we will probably go bankrupt.

Question

Quizplus · Accepted Answer

Statement I is false because reducing the federal budget deficit only means the government is borrowing less, not necessarily reducing the existing national debt. Statement II is false because countries can carry large national debts without going bankrupt, especially if they can manage and service their debt effectively.

Statement I: If the Federal Budget Deficit Goes Down,the National