Government and the Economy Unit Test

Question

8 of 178 of 17 Items

Question
Which situations result in an increase in the national debt?

Select the two correct answers.

(2 points)
Responses

a decrease in the federal budget's deficit
a decrease in the federal budget's deficit

an increase in intragovernmental debt
an increase in intragovernmental debt

an increase in the federal budget's deficit
an increase in the federal budget's deficit

a surplus in the federal budget
a surplus in the federal budget

a balanced federal budget
a balanced federal budget

a decrease in intragovernmental debt

Answer 1

The two situations that result in an increase in the national debt are:

• an increase in the federal budget's deficit
• an increase in intragovernmental debt

These options indicate circumstances where the government is either borrowing more or increasing its liabilities, thus contributing to the national debt.