The national debt is defined as the sum of all outstanding US Treasury bonds. This means it is the total amount of money that the government owes to creditors. Unlike government deficits, which refer to the amount by which government spending exceeds tax revenues for a particular fiscal year, the national debt accumulates over time as a result of borrowing from various sources to cover these deficits.
Therefore, the correct choice is:
- The sum of all outstanding US Treasury bonds.
This represents the total debt the government has accrued, as it includes all past borrowings that have not yet been repaid.
