National debt equals sum of:

High inflation usually leads to the opposite government response, where spending cuts and tax increases are implemented to cool down the economy and reduce inflationary pressures. An increase in spending during high inflation would likely exacerbate the problem, making this choice incorrect.

A low dollar value can influence trade balance and international purchasing power, but it does not directly lead to increased government spending and tax cuts. Instead, a low dollar value may prompt the government to focus on policies that strengthen the currency rather than stimulate the economy through increased spending.

A government surplus indicates that the government has more revenue than expenditures. In such cases, the typical response would not be to increase spending and cut taxes, as this could lead to a deficit. Instead, a surplus might encourage saving or paying down debt rather than stimulating the economy.