If the government runs a deficit, the total amount of government debt is
A) decreasing.
B) constant.
C) zero.
D) increasing.

Question

Quizplus · Accepted Answer

When the government runs a deficit, it means that they are spending more money than they are earning in revenue. As a result, they will need to borrow money to make up the difference, which increases the total amount of government debt. Therefore, the correct answer is D - increasing.

If the Government Runs a Deficit, the Total Amount of Government