Question

Each year that the federal government runs a deficit, the federal debt.

Each year that the federal government runs a surplus, the federal debt.
grows/shrinks?

Answer 1

grows

Shrinks

Step-by-step explanation:

A deficit is when government spending exceeds income from taxes. When there is a deficit, the government issues debts in the form of bonds and bills to cover its deficits, so government debt increases when deficit occurs.

A surplus is when the income of government from taxes exceeds its spending. When there's a surplus, the government can retire some of its debt.

I hope my answer helps you.