Net Public Debt Is the

question 7

Multiple Choice

Net public debt is the

• A) difference between tax revenues and government expenditures each year.
• B) sum of accumulated government deficits and surpluses held by individuals and businesses and foreign institutions.
• C) sum of accumulated government deficits and surpluses held by U.S. government agencies.
• D) sum of accumulated government deficits and surpluses held by large money center banks.

---

Definitions:

Price Determination

The process by which the prices of goods and services are established based on supply and demand conditions.

Supply and Demand

The fundamental economic model describing how prices vary as a result of a balance between product availability and the desire of buyers.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared to buy at a specific price point.

Demand Decreased

A situation where there is a reduction in the quantity of a product or service that consumers are willing or able to buy at given prices.