Asked by Meagan Silver on May 20, 2024
Verified
Which statement is true about any of the federal budget deficits of the 1990s?
A) The deficits were much larger than the national debt.
B) The deficits were a little larger than the national debt.
C) The deficits and the national debt were about equal.
D) The national debt was a little larger than the deficits.
E) The national debt was much larger than the deficits.
Federal Budget Deficits
The shortfall that occurs when the U.S. government's expenditures surpass its revenues in a fiscal year, leading to increased borrowing.
National Debt
The total amount of money that a country's government has borrowed, typically as a result of budget deficits, through issuing securities and government bonds.
- Investigate the factors leading to and the outcomes of national budget deficits and debt.
Verified Answer
JN
Jimmy NguyenMay 21, 2024
Final Answer :
E
Explanation :
The national debt is the total amount of money that a country's government has borrowed, while a budget deficit occurs when expenses exceed revenue for a specific budget year. Throughout the 1990s, the United States experienced budget deficits, but these annual deficits were additions to the overall national debt, making the national debt much larger than any single year's deficit.
Learning Objectives
- Investigate the factors leading to and the outcomes of national budget deficits and debt.