Which of these is NOT true about the government debt? It reflects the long history of repayments from occasional surpluses. When you buy a government bond, the government is loaning you the money. It reflects the long history of past borrowing to fund budget deficits. Government debt is the total amount the government owes.
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Statement 1: "It reflects the long history of repayments from occasional surpluses." This statement is not true. Government debt reflects the accumulated borrowing over time, not the repayments from surpluses. Surpluses can help reduce debt, but the debt itself Show more…
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