The Net National Debt Is Smaller Than the Gross National

question 34

Multiple Choice

The net national debt is smaller than the gross national debt because

• A)some debt is held by foreigners.
• B)some debt is held by U.S.citizens.
• C)some debt is held by government agencies.
• D)the government does not have to pay all of the debt.

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Definitions:

Consumer Durables

Goods that are not for immediate consumption and are able to be used over a longer period, like appliances and vehicles.

Equipment And Software

Tangible assets such as machinery and tools, and intangible assets like software, used in the operation of a business to produce goods or services.

Productive Capacity

The maximum output a company or economy can produce with its current resources, also reflecting the efficiency of production processes.

Financial Assets

Financial assets such as stocks and bonds are claims to the income generated by real assets or claims on income from the government.