The two situations that result in an increase in the national debt include, an increase in intergovernmental debt and federal budget deficits.
What is a national debt?
A national debt can be defined as the total sum of debts owed by the government of a nation.
Situations that results to an increase in the national debt include:
- federal budget deficits
- borrowing from the Social Security Trust Fund
- low interest rates promoting increased investment
- raised debt ceilings
- An increase in intergovernmental debt, etc
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