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What Is Meant By The Term National Debt? |
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Answer» When a GOVERNMENT spends more than it receives in taxes, it runs a budget deficit, which is usually covered by issuing debt obligations to domestic and/or international investors. In the US, these obligations are Treasury BILLS, Treasury notes, and Treasury bonds. The total outstanding amount of such obligations CONSTITUTES a National Debt. When a government spends more than it receives in taxes, it runs a budget deficit, which is usually covered by issuing debt obligations to domestic and/or international investors. In the US, these obligations are Treasury bills, Treasury notes, and Treasury bonds. The total outstanding amount of such obligations constitutes a National Debt. |
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