How Is the Public Debt Calculated

question 77

Multiple Choice

How is the public debt calculated?

• A)by adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation
• B)by subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation
• C)by subtracting current government spending from current government tax revenues
• D)by adding up the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation

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Definitions:

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.

Debentures

A type of debt instrument not secured by physical assets or collateral but based on the issuer's creditworthiness and reputation.

Warrants

Warrants are legal documents issued by a governmental authority allowing law enforcement to carry out certain actions such as searches or arrests.

Section 16(b)

A provision under the Securities Exchange Act of 1934 that seeks to prevent insider trading by requiring profits gained from short-swing transactions by corporate insiders to be returned to the corporation.