If the Net Public Debt Remains Unchanged During a Given

question 129

Multiple Choice

If the net public debt remains unchanged during a given period, but the gross public debt increases, then which of the following statements must be correct?

• A) Government interagency borrowing must have increased during the period.
• B) Government interagency borrowing must have decreased during the period.
• C) Foreign ownership of U.S. Treasury securities must have risen during the period.
• D) Foreign ownership of U.S. Treasury securities must have fallen during the period.

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Definitions:

Start-Up Funds

Capital that is required to start a new business, covering initial operational costs and investments.

Business Incubators

Organizations or programs designed to support the successful development of entrepreneurial companies through an array of business resources and services.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people, often measured by increases in standards of living, income, and employment.

Not-for-profit Organizations

Entities that function with goals beyond profit-making, emphasizing on initiatives related to social, educational, or charity work.