What is the term for the amount owed by the government that results from past borrowing?

What is the term for the amount owed by the government that results from past borrowing?

• A. National debt
• B. Budget deficit
• C. Deficit spending
• D. Civil liberties

Answer: (A)

Think about debt versus annual deficits. The amount the government owes because of past borrowing is the national debt. It’s the cumulative total of borrowing that has not yet been repaid, including bonds and other securities held by the public and by other parts of the government. The debt grows when deficits occur in previous years and is reduced only by surpluses or repayments. This is different from a budget deficit, which is the gap between revenue and spending in a single year, and from deficit spending, which describes the policy of running those annual deficits. Civil liberties are about individual rights protected from government infringement. So the term for what’s owed due to past borrowing is national debt.

Think about debt versus annual deficits. The amount the government owes because of past borrowing is the national debt. It’s the cumulative total of borrowing that has not yet been repaid, including bonds and other securities held by the public and by other parts of the government. The debt grows when deficits occur in previous years and is reduced only by surpluses or repayments.

This is different from a budget deficit, which is the gap between revenue and spending in a single year, and from deficit spending, which describes the policy of running those annual deficits. Civil liberties are about individual rights protected from government infringement. So the term for what’s owed due to past borrowing is national debt.