The Public Debt Can Decline While the Gross Federal Debt

question 18

Multiple Choice

The public debt can decline while the gross federal debt grows if:

• A) The total outstanding debt of the federal government declines.
• B) The public debt is retired.
• C) Less of the gross federal debt is financed by the government itself.
• D) More of the gross federal debt is financed by the government itself.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to estimate the cost of living.

Basket of Goods

A selection of various items that are used to track inflation and the cost of living over time.

Consumer Price Index

An assessment method that evaluates the overall weighted price of a variety of consumer services and goods, like food, transportation, and healthcare, aimed at measuring the rate of inflation.

Quart of Milk

A unit of liquid measurement commonly used in the United States, equivalent to approximately 0.946 liters of milk.