Suppose that the budget deficit of a country remains level for five years. The federal debt will:
A)remain constant.
B)fall.
C)rise.
D)either remain constant or fall.

Name: Suppose that the budget deficit of a country remains level for five years. The federal debt will: A)remain constant. B)fall. C)rise. D)either remain constant or fall.
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Question

Quizplus · Accepted Answer

A budget deficit means the government is spending more than it earns, so the federal debt will increase as the government borrows to cover the deficit.

Suppose That the Budget Deficit of a Country Remains Level