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 collects more revenue than it spends, allowing it to pay down existing debt, thereby reducing the national debt.
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 balanced budget.
The federal government has a balanced budget.
The federal government has a surplus in the budget.
The federal government has a surplus in the budget.
The federal government has an increase in the federal deficit from the previous fiscal year.
1 answer
1 answer