Which of the following statements about the public debt is true?
A) It is a stock variable.
B) It is equal to the budget deficit.
C) It decreases when the government runs a budget deficit..
D) All of the above.

Question

Quizplus · Accepted Answer

The public debt is a stock variable, meaning it is a cumulative total of past government borrowing. It is not equal to the budget deficit because the deficit is the amount by which government spending exceeds revenues for a given year. The public debt actually increases when the government runs a budget deficit.

Which of the Following Statements About the Public Debt Is