The sum of past budget deficits in excess of the sum of past budget surpluses refers to
A) the trade deficit.
B) the federal government net worth.
C) the cyclically unbalanced budget.
D) the national debt.

Question

Quizplus · Accepted Answer

The sum of past budget deficits in excess of the sum of past budget surpluses represents the accumulation of the national debt. Hence, option D is the correct answer. Option A (the trade deficit) is not relevant to the question. Option B (the federal government net worth) refers to the difference between assets and liabilities of the federal government, and not to the question of past budget deficits and surpluses. Option C (the cyclically unbalanced budget) refers to short-term fluctuations in the budget balance due to business cycles, and not to the long-term accumulation of debt.

The Sum of Past Budget Deficits in Excess of the Sum