Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Experience the convenience of finding accurate answers to your questions from knowledgeable professionals on our platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

What happens to the national debt if the government has a $500 billion budget deficit?
A)
The national debt increases by $500 billion.
B)
The national debt decreases by $500 billion.
The national debt will increase by $50 billion.
D)
The national debt will decrease by $50 billion.

Sagot :

Answer: A. The national debt increases by $500 billion.

Explanation:

National debt simply refers to the total debts that is owed by a particular country. Budget deficit on the other hand, has to do with a scenario whereby the proposed expenses by the government for a particular year is more than its revenue.

Regarding the question, if the government has a $500 billion budget deficit, this will lead to a rise in the national debt as the debt will increase by $500 billion as well.

Therefore, the correct option is A

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.