An increase in the public debt would most likely indicate that
A) the budget deficit has increased.
B) the budget deficit has decreased.
C) the trade deficit has decreased.
D) national saving has increased.

Question

Quizplus · Accepted Answer

Public debt is the total amount of money owed by the government to its creditors. An increase in public debt means that the government has borrowed more money, which is usually done through selling bonds. This indicates that the government is experiencing a budget deficit, as it is spending more money than it is generating in revenue.

An Increase in the Public Debt Would Most Likely Indicate