Bundle: Economics for Today, Loose-leaf Version, 10th + MindTap Economics, 2 terms (12 months) Printed Access Card
Bundle: Economics for Today, Loose-leaf Version, 10th + MindTap Economics, 2 terms (12 months) Printed Access Card
10th Edition
ISBN: 9781337738736
Author: Tucker, Irvin B.
Publisher: Cengage Learning
Question
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Chapter 23, Problem 1SQP
To determine

The relationship between budget deficits and national debt.

Expert Solution & Answer
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Explanation of Solution

The sum of federal budget deficits in the past is known as the national debt. When there is a large budget deficit, it implies that the rate of increase in national debt is high. When the budget deficit is small, it implies that the rate of increase in national debt is low.

Economics Concept Introduction

Budget deficit: Budget deficit is a situation in which the expenditure of the government exceeds the revenue of the government.

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