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 _____ to the national debt and _____ to the debt held by the public.

Question

Quizplus · Accepted Answer

The total sale of securities ($10 billion to the Social Security Administration + $15 billion to the general public) adds $25 billion to the national debt. However, only the $15 billion sold to the general public counts towards the debt held by the public, as transactions within government accounts (like the one with the Social Security Administration) do not change the public debt figure.

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