The gross public debt is the
A) amount of U.S. paper currency and coins in circulation.
B) difference between current government expenditures and tax revenues.
C) ratio of past deficits to past surpluses.
D) total of all accumulated deficits and surpluses.

Question

Quizplus · Accepted Answer

The gross public debt is the total of all accumulated deficits and surpluses, meaning it reflects the total amount that the government owes to creditors. It includes all of the outstanding treasury bills, bonds, and notes sold by the government to finance its operations. Option A is incorrect because the amount of currency in circulation is not related to the government's debt. Option B is incorrect because it only reflects the difference between current expenditures and tax revenues, not the total debt. Option C is incorrect because it relates to ratios of past deficits to past surpluses rather than the total debt.

The Gross Public Debt Is the