The size of the national debt increases when the federal government runs a deficit.
Level of Learning 1: Knowledge of key terms

Question

Quizplus · Accepted Answer

This statement is true. The national debt is the total amount of money that the federal government owes to its lenders, which includes foreign governments, domestic businesses, and individuals. When the government spends more money than it receives in revenue (i.e., runs a deficit), it must borrow money to make up the difference, thus increasing the national debt.

The Size of the National Debt Increases When the Federal