Question

What does a budget deficit do to the national debt?
a. decreases
c. has no effect
b. increases
d. depends on how large the deficit is

Answer 1

The correct answer is D., because if its little its easily repayed but if its to large it becomes harder to repay, I hope this helps you have an amazing day!!

                                     ~razerthebrainieace

Answer 2

Answer:

The correct answer is option d.

Explanation:

A budget deficit refers to the situation where the government expenditures are higher than government revenue. The budget deficit for each year causes national debt.  

The budget deficit can also be helpful as increased government spending leads to economic growth. But a high level of deficit can be harmful. It may lead to crowding out of the private investment.  

So it depends on the size of the deficit. A small budget deficit can be helpful in boosting the economy and reducing national debts. But a higher deficit can cause an increase in the deficit.