If the national debt rises to the debt ceiling and there is currently a budget {Blank}, the...

Question:

If the national debt rises to the debt ceiling and there is currently a budget _____, the Congress and the President must agree to _____ the debt ceiling, or else the federal government will have insufficient funds to pay its bills and will be forced to shut down.

a. surplus; lower

b. deficit; raise

c. surplus; lower

d. None of the answers above are correct.

Federal Debts and Deficits:

The government must levy and collect taxes to get revenue for its programs. If the government spends more than it takes in, there is an annual deficit. The accumulation of the deficits is the federal debt.

Answer and Explanation: 1

The best answer is b.

If the national debt rises to the debt ceiling and there is currently a budget deficit, the Congress and the President must agree to raisethe debt ceiling, or else the federal government will have insufficient funds to pay its bills and will be forced to shut down.

The debt ceiling in the United States is not part of the Constitution. All the Constitution says, in the 14th Amendment, is, "the validity of the public debt of the United States, authorized by law...shall not be questioned, Congress created the debt ceiling during World War I to hold the president fiscally responsible. When it has become necessary, the debt ceiling has always been raised, although sometimes only after a short government shutdown.


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What is a Budget Deficit? - Definition, Causes & History

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Chapter 11 / Lesson 14
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Examine the budget deficit definition and the causes of budget deficits. Find out how government budget deficits affect the economy and learn relevant history.


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