In 2 or 3 sentences, explain how an increase in government spending can increase the national debt.

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02-03-2016
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In 2 or 3 sentences, explain how an increase in government spending can increase the national debt.

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hopedavis129 hopedavis129 · Answer 1 · 2016-03-02T20:44:05+01:00

hopedavis129 hopedavis129

02-03-2016

An increase in government spending can increase the national debt due to borrowing. If spending is more than tax collections, a deficit is obtained. [ If revenues are greater than the amount spent, a surplus is realized. ]

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