Which of the following is not true?
A) If the government has a budget deficit, the national debt is increased.
B) National debt is a marginal value of outstanding Commonwealth Government securities.
C) National debt represents the extent of previous borrowing by the federal government.
D) A portion of national debt is held by the central bank.

Question

Quizplus · Accepted Answer

National debt is not a marginal value of outstanding Commonwealth Government securities; it is the total amount of money owed by the federal government due to previous borrowing. A budget deficit occurs when government spending exceeds revenue, leading to an increase in the national debt. The central bank may hold a portion of the national debt, but this is not always the case.

Which of the Following Is Not True