Suppose That We Reduce the Federal Budget Deficit (In Billions

question 215

Multiple Choice

Suppose that we reduce the federal budget deficit (in billions of dollars) in year 1 from 300 to 150 and in year 2 from 150 to 50.During these two years the national debt will

• A)fall by 200.
• B)fall by 50.
• C)rise by 50.
• D)rise by 150.
• E)rise by 200.