Question
In which situation does the national debt decrease?(1 point)
Responses
The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit.
The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit.
The federal government has a surplus in the budget.
The federal government has a surplus in the budget.
The federal government has a balanced budget.
The federal government has a balanced budget.
The federal government has an increase in the federal deficit from the previous fiscal year.
Responses
The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit.
The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit.
The federal government has a surplus in the budget.
The federal government has a surplus in the budget.
The federal government has a balanced budget.
The federal government has a balanced budget.
The federal government has an increase in the federal deficit from the previous fiscal year.
Answers
GPT-4o mini
The national debt decreases in the situation where **the federal government has a surplus in the budget**. When there is a budget surplus, the government is bringing in more revenue than it is spending, allowing it to pay down existing debt.