F. Interest payments on the national debt:
a) do not add to the current budget deficit.
b) cannot affect future debt.
c) have increased with each budget deficit.
d) have decreased since 1960.
e) have remained constant since WWII.



Answer :

The correct answer to the question is: c) have increased with each budget deficit. Interest payments on the national debt tend to increase with each budget deficit because the government needs to borrow more money to cover the deficit. As the national debt grows, the amount of interest paid on that debt also increases over time. This is because the government has to pay interest on the accumulated debt, and as the debt grows, so does the interest payment associated with it. To illustrate this concept, imagine you have a credit card debt. The more you borrow and the longer you carry the debt, the more interest you will have to pay. Similarly, with the national debt, as it increases due to budget deficits, the interest payments also increase. Therefore, option c) is the most accurate answer as interest payments on the national debt have indeed increased with each budget deficit.