The national debt
A) is currently greater than the annual federal deficit
B) is reduced by the revenue generated from the federal deficit
C) decreases as the deficit is reduced
D) is a flow variable
E) varies depending on developments in the stock market

Question

Quizplus · Accepted Answer

The national debt is the total amount of money that the federal government owes to its creditors, including foreign governments, individuals, and institutions. It includes all outstanding Treasury securities and other federal government obligations. The annual federal deficit is the difference between government spending and revenues in a given fiscal year. As of 2021, the national debt is about $28 trillion, which is higher than the annual federal deficit.

The National Debt