Which of the following is true?
A) The federal budget deficit is a flow and so is the national debt.
B) The national debt is both a stock and a flow.
C) The federal budget deficit is a stock and the national debt is a flow.
D) The federal budget deficit is a flow and the national debt is a stock.
E) The federal budget deficit is a stock and so is the national debt.

Question

Quizplus · Accepted Answer

The federal budget deficit is a flow because it measures the amount by which government spending exceeds revenue on an annual basis. On the other hand, the national debt is a stock because it represents the total amount of money that the government has borrowed over time and still owes to its creditors.

Which of the Following Is True