Question

U.s. national debt​ ______ when the federal​ government's ______.

a. ​decreases; tax revenue rises faster than outlays

b. ​increases; tax revenue rises faster than outlays

c. ​decreases; outlays exceed tax revenue

d. ​increases; outlays exceed tax revenue

Answer 1

d. Increases when outlays (payments) exceed revenue.

Outlays (or payments) are the expenses, and tax revenue is the income. So whenever the expenses outweigh the income you will add to the debt. If you earn $500 a month but spend $700 you will be adding that extra $200 to your debt each month.