In which situation does the national debt decrease?(1 point)

Question

Responses

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.
The federal government has an increase in the federal deficit from the previous fiscal year.

The federal government has a decrease in the federal deficit from the previous fiscal year but still has a deficit.

Answer 1

The national debt decreases in the situation where the federal government has a surplus in the budget.

When the government operates with a budget surplus, it means that its revenue exceeds its expenditures, allowing it to pay down existing debt.