Which situations result in an increase in the national debt?

Question

Select the two correct answers.

(2 points)
Responses

a balanced federal budget
a balanced federal budget

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

a decrease in intragovernmental debt
a decrease in intragovernmental debt

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

an increase in the federal budget's deficit

Answer 1

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

1. An increase in the federal budget's deficit
2. An increase in intragovernmental debt

These scenarios contribute to the overall national debt by either increasing the amount the government needs to borrow (deficit) or by increasing the obligations it has to various government programs (intragovernmental debt).