How is the public debt calculated?
A)by adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation
B)by subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation
C)by subtracting current government spending from current government tax revenues
D)by adding up the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation

Question

Quizplus · Accepted Answer

Public debt refers to the accumulation of annual budget deficits over time. It is calculated by subtracting the government's annual tax revenues from its annual spending, and cumulating the resulting deficits (or surpluses, if there are any) over the years. This gives the total amount of money that the government has borrowed from investors or other countries to finance its spending.

How Is the Public Debt Calculated