Asked by David Crouch on May 01, 2024
Verified
Which statement is true?
A) The federal budget deficit reached a peak in 1992 and has been declining since then.
B) The federal budget deficit in fiscal year 1997 was at a record high.
C) Because we ran federal budget surpluses since 1998,the national debt is falling.
D) The federal government ran budget surpluses from 1998 to 2001,but returned to deficits since 2002.
Federal Budget Deficit
The financial situation that occurs when a government spends more money than it receives in revenue, typically measured over a fiscal year.
- Analyze the relationship between economic growth, government budget deficits/surpluses, and the national debt.
Verified Answer
BM
Benedek MolnárMay 02, 2024
Final Answer :
D
Explanation :
The statement that best reflects the truth is that the federal government ran budget surpluses from 1998 to 2001, but returned to deficits since 2002. Options A and B are incorrect as they either present incorrect information or an outdated status. Option C is also not completely accurate as the national debt is different from the annual budget deficit/surplus.
Learning Objectives
- Analyze the relationship between economic growth, government budget deficits/surpluses, and the national debt.