Which of the following statements about the public debt is TRUE?
A) It is a stock variable.
B) It is equal to the budget deficit.
C) It decreases when the government runs a budget deficit.
D) all of the above

Question

Quizplus · Accepted Answer

The public debt is a stock variable, meaning it is measured at a point in time rather than over a period of time. It is not equal to the budget deficit, as the deficit represents the difference between government spending and revenue in a given year. The public debt increases when the government runs a budget deficit, as it must borrow money to finance its spending. Therefore, only statement A is true.

Which of the Following Statements About the Public Debt Is