Statement I: If we run a federal budget deficit,the national debt will rise.
Statement II: If we run a federal budget surplus of $100 billion,the national debt will decline by $100 billion.

Question

Quizplus · Accepted Answer

Statement I is true because when a government spends more than it earns, it borrows money, increasing the national debt. Statement II is also true because a budget surplus means the government has extra funds, which can be used to pay down the national debt, reducing it by the surplus amount.

Statement I: If We Run a Federal Budget Deficit,the National