A common confusion is that between the debt and the deficit. Explain each of the following: a.

Question:

A common confusion is that between the debt and the deficit. Explain each of the following:
a. A budget deficit leads to a growing government debt.
b. Reducing the deficit does not reduce the government debt.
c. Reducing the government debt requires running a budget surplus.
d. Even though the government deficit was reduced in the 1993-1998 period, the government debt still rose in these years.