If the government turns up a zero budget deficit one year, the national debt

A. increases.
B. decreases.
C. stays the same.
D. disappears.

Please select the best answer from the choices provided:
A
B
C
D

Question

jonarg2006 jonarg2006

10-07-2024
Business

Answered

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If the government turns up a zero budget deficit one year, the national debt

A. increases.
B. decreases.
C. stays the same.
D. disappears.

Please select the best answer from the choices provided:
A
B
C
D

Sagot :

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GinnyAnswer GinnyAnswer · Answer 1 · 2024-07-10T15:22:14-04:00

Final answer:

When the government achieves a zero budget deficit, the national debt stays the same due to the accumulation of all deficits. A budget surplus leads to a decline in the national debt, while a deficit causes it to grow.

Explanation:

The national debt stays the same when the government achieves a zero budget deficit because the debt is the accumulation of all deficits.

Eliminating deficits does not automatically reduce the debt; it just prevents it from increasing further.

Conversely, a budget surplus leads to a decline in national debt, while a budget deficit causes the national debt to grow.

Learn more about Budget Deficit and National Debt here:

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Sagot :

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