A deficit ceiling directly limits
A)The rate at which government spending can exceed government revenue.
B)The amount of the national debt.
C)The trade deficit.
D)Inflation.

Question

Quizplus · Accepted Answer

A deficit ceiling directly limits the rate at which government spending can exceed government revenue. It sets a cap on the amount of new debt the government can take on each year, which can help prevent runaway deficits and ballooning debt levels. However, it does not directly address the size of the national debt, the trade deficit, or inflation.

A Deficit Ceiling Directly Limits