What is the difference between a public deficit and public debt?
Answer and explanation
Correct answer: D. The deficit is one year's shortfall; the debt is the total accumulated
- Step 1: A deficit arises when spending exceeds revenue in a year. Step 2. The debt is the sum of past deficits still owed. Answer: shortfall in one year versus accumulated total. Why not the others: these definitions are reversed or false.
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