ECON MACRO
5th Edition
ISBN: 9781337430401
Author: William A. McEachern
Publisher: Cengage Limited
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Question
Chapter 12, Problem 3.7P
To determine
Difference between gross federal debt and federal debt held by the public.
Concept Introduction: Public debt is the amount of debt owed by a sovereign government to its creditors. When a country wants to raise money, the primary resource available is for the country to issue debt securities to the public. Public debt securities are items such as Treasury notes, Treasury bills and long-term Treasury bonds. Public debt securities issued by the government can be held by domestic or foreign interests, and the government has an obligation to repay the debt securities when they mature.
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