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When the government achieves a zero budget deficit, the national debt stays the same due to the accumulation of all deficits. A budget surplus leads to a decline in the national debt, while a deficit causes it to grow.
The national debt stays the same when the government achieves a zero budget deficit because the debt is the accumulation of all deficits.
Eliminating deficits does not automatically reduce the debt; it just prevents it from increasing further.
Conversely, a budget surplus leads to a decline in national debt, while a budget deficit causes the national debt to grow.
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