How is the public debt calculated?  A. By adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation B. By subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation C. By subtracting current government spending from current government tax revenues D. By adding up the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation

Question

Andrew

Business

7 September, 13:57

How is the public debt calculated?  A. By adding up consumption, investment, government purchases, and net exports and then cumulating the annual totals over the years of the nation B. By subtracting consumption and investment from government spending each year and then cumulating the annual totals over the years of the nation C. By subtracting current government spending from current government tax revenues D. By adding up the difference between annual government tax revenues and annual government spending and cumulating the differences over the years of the nation

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Answers (1)

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Jadyn Spears · Answer 1

The correct answer to the following question is option D) The difference between governments tax revenues and expenses would be added together and this difference would be spread over the years.

Explanation:

Public debt is also said to be sovereign debt or national debt, which represents the amount of money that a country owes to its lenders (who can be other nations government, institutions etc). It is a collection of a country's annual budget deficit. From the given options only D) properly tells how to calculate the public debt.