The size of the debt will begin to shrink if the federal government balances its budget.

Name: The size of the debt will begin to shrink if the federal government balances its budget.
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Question

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Balancing the budget only means that the government's spending equals its revenue for a given fiscal year; it does not automatically lead to a reduction in the overall national debt. The debt will only shrink if the government runs a surplus and uses that surplus to pay down the debt.

The Size of the Debt Will Begin to Shrink If