The Federal Deficit Nearly Tripled

The federal government’s deficit nearly tripled in the first nine months of the fiscal year. Tax revenues decreased by 11% and government spending jumped 10%. Interest payments reached $652 billion—25% more than during the same period a year ago. The deficit adds to an already large federal debt.—npr.org

Answer the following questions to check your understanding of the story.

1) Why is the federal government deficit growing?

The federal government deficit is growing because _____________.

a) government spending and debt interest are increasing, but the decrease in tax revenues is making the deficit smaller than it would otherwise be

b) tax revenues are decreasing, and government spending and debt interest are increasing

c) tax revenues are decreasing and government spending is increasing, but the increase in debt interest is making the deficit smaller than it would otherwise be

d) tax revenues are decreasing and debt interest is increasing, but the increase in government spending is making the deficit smaller than it would otherwise be

2) By how much does the federal debt grow each year?

The federal debt grows by an amount equal to _____________.

a) the federal government budget deficit

b) federal government spending plus debt interest minus tax revenues

c) federal government spending

d) the debt interest

The Federal Deficit Nearly Tripled

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