While the budget deficit represents a ________, the public debt represents a ________.
A) flow; flow
B) flow; stock
C) stock; stock
D) stock; flow

Question

Quizplus · Accepted Answer

The budget deficit represents the difference between government spending and government revenue in a given year, which is a flow concept. On the other hand, the public debt represents the accumulation of past budget deficits and surpluses, which is a stock concept. Therefore, the budget deficit is a flow and the public debt is a stock.

While the Budget Deficit Represents a ________, the Public Debt