Suppose the Treasury sells $10 billion worth of securities to the Social Security Administration and $15 billion to the general public. This sale would add _____ billion to gross public debt and _____ billion to the debt held by the public.

Question

Quizplus · Accepted Answer

The gross public debt increases by the total amount of securities sold, which is $25 billion ($10 billion to the Social Security Administration and $15 billion to the general public). The debt held by the public only includes the amount sold to the general public, which is $15 billion.

Suppose the Treasury Sells $10 Billion Worth of Securities to the Social