Statement I: If we exactly balance the federal budget,the national debt will remain the same.
Statement II: The national debt will rise every year that we run a federal budget deficit.

Question

Quizplus · Accepted Answer

Statement I is true because if the federal budget is exactly balanced, meaning government revenues equal expenditures, there will be no additional borrowing and thus the national debt will not increase. Statement II is also true because running a federal budget deficit means the government spends more than it earns, necessitating borrowing that adds to the national debt.

Statement I: If We Exactly Balance the Federal Budget,the National