Practice Quiz

CLEP US Government

Category - Policy Processes

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What is the difference between the national debt and the national deficit?
  1. There is no difference. They are the same thing.
  2. The deficit is each year’s debts added together.
  3. The debt is the cumulative deficit added together.
  4. A higher debt implies a lower deficit.
  5. A high debt forces a decrease in taxes to raise the deficit.
Explanation
Answer: C - The national deficit is how much more money the government spends than brings in each year, whereas the debt is the deficits of all the years added together, minus the occasional surplus. The 2011 federal deficit was $1.7 trillion and the national debt at the end of that year was over $15 trillion.
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