Government debt

Question

Government debt

Quizplus · Accepted Answer

Government debt is the total net amount of past government borrowing. It is the accumulation of all the deficits incurred by the government over the years. Option A is incorrect as revenues minus spending is the budget surplus, not government debt. Option B is incorrect as government debt can decrease if the government operates with a surplus. Option C is incorrect as spending minus revenues is the budget deficit, not government debt. Option E is incorrect as rising prices can contribute to inflation, but it is not the cause or result of government debt.

Government Debt