What is the difference between a budget deficit and public debt?

Answer and explanation

Correct answer: C. The deficit is a yearly shortfall while debt is the accumulated total

  1. Step 1: A deficit adds to the debt each year. Answer: The deficit is a yearly shortfall while debt is the accumulated total. Why not the others: The other statements are incorrect.

Practise more Economic Concepts.

Free questions with an explanation for every one, and full timed Sciences Po and Grandes Ecoles Entrance Practice mock tests.