question 7 (1 point)\nwhich is true?\n a) in any given year, the government surplus always exceeds its…

question 7 (1 point)\nwhich is true?\n a) in any given year, the government surplus always exceeds its deficit.\n b) the government deficit and the government debt are the same thing.\n c) a government deficit will always increase the government debt.\n d) a government surplus will always increase the government debt.

question 7 (1 point)\nwhich is true?\n a) in any given year, the government surplus always exceeds its deficit.\n b) the government deficit and the government debt are the same thing.\n c) a government deficit will always increase the government debt.\n d) a government surplus will always increase the government debt.

Answer

Brief Explanations:

  1. Option a: A government can have a deficit in a year, so the surplus doesn't always exceed the deficit.
  2. Option b: A deficit is the short - fall in a single period, while debt is the cumulative total of past deficits and other borrowings. They are not the same.
  3. Option c: When there is a government deficit, it needs to borrow money, which increases the government debt. This is correct.
  4. Option d: A government surplus means it has extra funds and can be used to pay off debt, reducing it rather than increasing it.

Answer:

C. A government deficit will always increase the government debt.