What is the meaning of the phrase: "the national debt is also a national credit"?
A)Only interest payments on the national debt constitute an economic burden.
B)Official figures seriously understate the size of the national debt.
C)What is owed must equal what is owned.
D)The national debt is equal to the physical assets owned by the government.
E)The national debt is a government debt held by the Bank of Canada and both of these are public institutions.

Question

Quizplus · Accepted Answer

This means that the national debt represents the total amount owed by the government to its creditors, but it also signifies the total amount of credit available to the government. In other words, because the debt is a reflection of what the government owes, it also represents the amount of wealth and resources that the government can access in the future.

What Is the Meaning of the Phrase: "The National Debt