The national debt is the cumulative effect of all past budget deficits and surpluses of the federal government. This includes any loans taken or bonds issued by the government to finance budget shortfalls. It is not the same as the budget deficit, which is a measure of the difference between government spending and revenues in a given year.

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The National Debt Is

Question 5

Multiple Choice

The national debt is

A) the difference between a nation's exports and imports of goods and services.
B) the sum of the personal debt of all citizens in the United States.
C) the cumulative effect of all past budget deficits and surpluses of the federal government.
D) equal to the current size of the budget deficit.

Correct Answer: