Explain how government budget deficits or surpluses impact national debt

A budget deficit occurs when government expenditure is greater than revenue. When this happens the government is now forced to acquire loans to remedy the deficiency and as such national debt grows. A budget surplus occurs when revenue is greater than expenditure. When this occurs there is no need to get more loans and the surplus can now be used to service the national debt; thus reducing it. 

Your answer is 2 because you do keep change flip when you divide fractions