What Is the Difference Between the Federal Budget Deficit and the National

question 158

Multiple Choice

What is the difference between the federal budget deficit and the national debt?

• A) The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses.
• B) The budget deficit is the cumulative effect of all prior national debts.
• C) The national debt includes all outstanding bonds, while the budget deficit excludes bonds held by government agencies.
• D) This is a trick question because there is no difference between the budget deficit and the national debt.

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