Question

What is debt? (a) stock-flow hypothesis (b) flow hypothesis (c) stock hypothesis (d) none of the above

Answer 1

Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor. Debt is a deferred payment, or series of payments, that is owed in the future, which is what differentiates it from an immediate purchase.

Answer 2

Explanation:

1. The U.S. debt is the sum of all outstanding debt owed by the federal government.

Two-thirds is debt held by the public. The government owes this to buyers of U.S. Treasury bills, notes, and bonds. That includes individuals, companies, and foreign governments.