What is the public debt?
a. borrowed money
b.the amount the government spends that exceeds its income
d. the total amount of money owed by the federal Government
D
Correct.
Accordig to Wikipedia:
"The United States public debt, commonly called the national debt, or U.S. government debt, is the amount of money owed by the United States federal government to creditors who hold U.S. Debt Instruments. ...
This does not include the money owed by states, corporations, or individuals, nor does it include the money owed to Social Security beneficiaries in the future."
The correct answer is d. the total amount of money owed by the federal Government.
To arrive at this answer, you can understand the concept of public debt as follows:
Public debt refers to the cumulative total amount of money owed by the government of a country, which includes accumulated budget deficits, borrowing from individuals, institutions, and other countries, and any outstanding bonds or loans. It represents the government's outstanding financial obligations that need to be repaid over time.
When the government spends more money than it generates from tax revenues and other sources of income, it incurs a budget deficit. To bridge this deficit, the government may borrow money from various sources, such as issuing government bonds, treasury bills, or taking loans from domestic or foreign entities, including individuals, institutions, or even other governments.
The public debt is an essential economic indicator, as it reflects the government's fiscal health and its ability to meet its financial obligations. It is usually expressed as a percentage of a country's gross domestic product (GDP), providing an indication of the debt burden in relation to the country's overall economic performance.
In summary, public debt represents the total amount of money that the federal government owes and includes borrowed money, accumulated budget deficits, and outstanding loans and bonds.