Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 200 and in year 2 from 200 to 100.During these two years the national debt will

A) fall by 300.
B) fall by 200.
C) stay the same.
D) rise by 200.
E) rise by 300.

Question

Katie Misener · Accepted Answer

Final Answer : E, Explanation :  The national debt increases by the amount of the deficit each year. In year 1, the deficit is 200, and in year 2, it is 100, so the debt rises by 300 in total.

Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 200 and in year 2 from 200 to 100.During these two years the national debt will

A) fall by 300.
B) fall by 200.
C) stay the same.
D) rise by 200.
E) rise by 300.

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Learning Objectives

Related questions

Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 200 and in year 2 from 200 to 100.During these two years the national debt willA) fall by 300.B) fall by 200.C) stay the same.D) rise by 200.E) rise by 300.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 200 and in year 2 from 200 to 100.During these two years the national debt will

A) fall by 300.
B) fall by 200.
C) stay the same.
D) rise by 200.
E) rise by 300.