The total value of U.S.Treasury bonds outstanding equals
A)the federal government deficit.
B)the federal government surplus.
C)the federal government debt.
D)the cyclically adjusted budget deficit.

Question

Quizplus · Accepted Answer

The total value of U.S. Treasury bonds outstanding represents the federal government's debt, which includes all past borrowing to finance budget deficits. Therefore, the correct choice is C. The federal government deficit (A) represents the excess of government spending over revenue in a single fiscal year, and the federal government surplus (B) represents the excess of revenue over spending in a single fiscal year. The cyclically adjusted budget deficit (D) takes into account the effects of the business cycle on government revenues and spending, but does not reflect the total outstanding debt.

The Total Value of U.S.Treasury Bonds Outstanding Equals