The difference between the gross public debt and the net public debt is that the
A) gross public debt includes entitlements while the net public debt does not.
B) gross public debt is based on budget deficit while the net public debt is not based on budget deficits.
C) gross public debt includes government interagency borrowing while the net public debt does not.
D) the gross public debt is expressed as a percentage of GDP while the net public debt is not.

Question

Quizplus · Accepted Answer

The gross public debt includes all forms of debt issued by the government, including debt held by other government agencies such as the Social Security Administration, while the net public debt excludes these interagency borrowings. Options A and B do not accurately describe the difference between gross and net public debt, while option D is incorrect as both gross and net public debt can be expressed as a percentage of GDP.

The Difference Between the Gross Public Debt and the Net