What is National debt or public debt ?
Correct answer: D. All of these
- A. State's borrowing from its population
- B. State's borrowing from foreign government
- C. state's borrowing from international institution
- D. All of these
Explanation
Public or national debt consists of government borrowing from domestic lenders, foreign governments, and international institutions. These sources together make “all of these” correct.
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About Public Finance
Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.
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