Question

True or false?

a. the total public debt is more relevant to an economy than the public debt as a percentage of gdp.
b. an internally held public debt is like a debt of the left hand owed to the right hand.
c. the federal reserve and federal government agencies hold more than three-fourths of the public debt.
d. the portion of the u.s. debt held by the public (and not by government entities) was larger as a percentage of gdp in 2009 than it was in 2000.
e. as a percentage of gdp, the total u.s. public debt is the highest such debt among the world's advanced industrial nations.

Answer 1

The answer would be true

Answer 2

A) False, because the relative size of the public debt affects a country's wealth and productivity.

B) True, it is similar to owing money to your spouse, the money doesn't leave the household.

C) False, the Fed, Social Security and other federal agencies together hold approximately 26% of the public debt (total US debt is around $23 trillion)

D) True, but not that much really. If you compare that same % between 2010 (around 40%) and today, it has nearly doubled to 74%

E) False, the US has a total debt vs GDP ratio of 115%, but the United Kingdom's ratio is 333%, France's 213%, Holland 522%, Canada also 115%, etc.