RealTime Data Analysis Exercise The graphs below show the fe

Real-Time Data Analysis Exercise* The graphs below show the federal government deficit and debt from 2000 to first quarter of 2018 (the most recent quarter). When budget is O A. in deficit; large deficit; fast-growing debit O C. balanced; small deficit, slow-growing debt , the debt increases. Abrings O B. in deficit; fast-growing deficit; large debt D. in surplus, large deficit; fast-growing debt Government deficit Cilions of dollars) Government debt (trillions of dollars) dt (tillions of dollars) 200 0 200- -400 600 -800 1,000 1,200- -1,400 04/2010 0472012 04/2014 Year 04/2006 04/200804/2010 04/201204/2014 04/201604/2006 04/2008 04/2016 Year Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis

Solution

Answer : The graph below shows the federal government deficit and debt from 2000 to first quarter of 2018.

When budget is in deficit, the debt increases. A fast growing deficit brings a large debt. As deficit increases the amount of debt increases at rapid speed. It means that government spending iis more than government revenue.It means that when deficit increases at large phase it is resulted in greater debt.