The difference between gross public debt and net public debt is that
A) net public debt includes interagency borrowing while the gross domestic product debt does not.
B) net public debt is expressed in real terms while gross public debt is expressed in nominal terms.
C) gross public debt includes interagency borrowing while net public debt does not.
D) gross public debt is held by individuals while net public debt is held by the government.

Question

Quizplus · Accepted Answer

Gross public debt includes all of the government's outstanding debt, including interagency borrowing. Net public debt is the gross public debt minus the government's financial assets. Therefore, net public debt excludes interagency borrowing.

The Difference Between Gross Public Debt and Net Public Debt