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Sauron [17]
4 years ago
4

Which statements accurately describe debts and deficits? Check all that apply. Debt is free and does not affect a government. A

government's budget deficit causes debt to increase. A government's budget deficit causes debt to decrease. Debt requires a government to pay back more than it has borrowed. The deficit is the amount a government spends above what it brings in.
Social Studies
2 answers:
olga55 [171]4 years ago
7 0

The statements that accurately describe debts and deficits are the following:

  • A government's budget deficit causes debt to increase.

A budget deficit increases the level of public sector debt. Large deficits will cause national debt as a percentage of Gross Domestic Product to increase.

  • Debt requires a government to pay back more than it has borrowed.

When governments borrow money, they must pay interest rates so they end up paying back more. Furthermore, the interest on the debt is added to the deficit each year. About 5 percent of the budget goes toward debt interest payments.

  • The deficit is the amount a government spends above what it brings in.

In other words, a budget deficit is when spending exceeds income or spending is higher than income. Therefore, when income exceeds spending, it creates a budget surplus, which lowers the debt.

STALIN [3.7K]4 years ago
6 0
<h2>Answer: </h2>

The statements that describes the debts is about the government budget deficit that is causing debt to increase upon.  

<h2> Explanation: </h2>

Budget deficit has been bringing a great increase over the public sector of the debt. Debt hence require the Government in terms of paying back much more as compare to the one that is borrowed. Deficit is all about the total amount the Government has been spending above what is bringing into.


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