What is the difference between the federal budget deficit and the national debt?
A) The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses.
B) The budget deficit is the cumulative effect of all prior national debts.
C) The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies.
D) This is a trick question because there is no difference between the budget deficit and the national debt.

Question

Quizplus · Accepted Answer

The budget deficit is the amount by which expenditures exceed revenues in a single year, while the national debt is the result of all past budget deficits and surpluses. In other words, the budget deficit is just for one year, while the national debt is the accumulation of budget deficits and surpluses over time.

What Is the Difference Between the Federal Budget Deficit and the National