Question

the national debt increases when:
a. the government increases imports from other countries.
b. the government raises taxes while cutting spending.
c. the government borrows money to fund programs.
d. the government forces banks to lower interest rates.

Explanation:

National debt is the total amount a government owes. It grows when the government takes on new borrowing to cover expenditures that tax revenue doesn't meet.

• Option A: Government imports affect trade balance, not direct debt growth.
• Option B: Raising taxes and cutting spending reduces deficits, lowering debt growth.
• Option C: Borrowing directly adds to the total amount owed, increasing national debt.
• Option D: Lowering interest rates affects borrowing costs, not direct debt increase.

Answer:

C. the government borrows money to fund programs.