Which of the following will NOT cause the public debt to change?
A) Collection by the government of $200 billion more in taxes than it spends
B) Government budget deficit
C) Government budget surplus
D) Balanced budget

Question

Quizplus · Accepted Answer

A balanced budget means that the government's spending is equal to its revenue, which would not cause a change in the public debt. A budget deficit occurs when the government spends more than it earns, causing the debt to increase. A budget surplus means that the government's revenue exceeds its spending, resulting in a decrease in the public debt. Additionally, collection of more taxes than spending would also result in a budget surplus and decrease in the public debt.

Which of the Following Will NOT Cause the Public Debt