Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![**Question:**
The U.S. national debt equals the sum of government deficits over time.
- **True or False**
**Options:**
- [True]
- [False]
**Explanation:**
This question tests your understanding of the relationship between national debt and government deficits. The national debt is indeed the accumulation of past government deficits, minus any surpluses. When the government spends more than it earns in revenue, it runs a deficit, which then contributes to the national debt. Consider researching how fiscal policies impact these economic figures.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8eff56ae-1239-440d-ba2a-4c0283b19249%2F82bbdc66-d50c-4b66-9679-f3b7227f6e83%2Fl1h08qc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Question:**
The U.S. national debt equals the sum of government deficits over time.
- **True or False**
**Options:**
- [True]
- [False]
**Explanation:**
This question tests your understanding of the relationship between national debt and government deficits. The national debt is indeed the accumulation of past government deficits, minus any surpluses. When the government spends more than it earns in revenue, it runs a deficit, which then contributes to the national debt. Consider researching how fiscal policies impact these economic figures.
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