Outstanding liabilities of federal, state, and local governments minus government financial assets is _____
A) gross debt.
B) net debt.
C) twin deficit.
D) debt ceiling.
E) budget deficit.

Question

Quizplus · Accepted Answer

Net debt is calculated by subtracting government financial assets from outstanding liabilities, and it represents the true amount of debt that a government must repay. Gross debt includes all outstanding liabilities, regardless of any financial assets that may offset them. The other choices, twin deficit and debt ceiling, refer to different concepts related to government debt but are not the same as net debt. Budget deficit refers to the difference between government spending and revenue in a given year, whereas net debt represents the cumulative effect of past deficits and surpluses.

Outstanding Liabilities of Federal, State, and Local Governments Minus Government