Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes spending projections of $4.2 billion. Tax revenue projects $3.8 billion. Which will be the most likely consequence?

A. The national debt will decrease.

B. The national debt will increase.

C. Personal incomes will go down.

D. Unemployment programs will be cut.

Question

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Social Studies

30 August, 19:06

Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes spending projections of $4.2 billion. Tax revenue projects $3.8 billion. Which will be the most likely consequence?

A. The national debt will decrease.

B. The national debt will increase.

C. Personal incomes will go down.

D. Unemployment programs will be cut.

+5

Answers (2)

Know the Answer?

Maggie Chambers · Answer 1

The correct answer is B. The national debt will increase since more money will be spent than the one that comes from taxes. Therefore, the fiscal deficit will increase. Unemployment programs shouldn't be cut, as this would generate even less income, because the population would have less money for consumption, and therefore there would be less taxes to pay.

Bernie · Answer 2

Answer: b Nat debt increase

Explanation:

not enough money