Question

What is the relationship between national debt and deficit? a. a deficit is the money the government owes the states b. a deficit is the sum of national debts c. the national debt is an accumulation of deficits d. the national debt is the sum of state deficits

Answer 1

c. the national debt is an accumulation of deficits

In simple terms, a budget deficit is the difference between what thefederal government spends (called outlays) and what it takes in (called revenue or receipts). The national debt, also known as the public debt, is the result of the federal government borrowing money to cover years and years of budget deficits.