Final answer:
The total cumulative amount a country owes its creditors is known as national debt, and it constitutes all the borrowing undertaken by a government to finance its expenditures beyond revenue.
Step-by-step explanation:
The total cumulative amount a country owes its creditors is known as national debt. This term refers to the total amount of money that a government owes to its lenders. National debt is a significant issue for many countries, as it reflects the borrowing that has been undertaken to fund various government expenditures beyond what is covered by taxes and other income sources. Countries often take on debt to finance their growth or expansion ambitions. High levels of national debt can lead to economic challenges, including the potential for hyperinflation and currency collapse, especially if the country cannot meet its debt obligations or the interest payments on its debt.
For example, as of July 2015, the national debt of the United States stood at approximately $18.6 trillion. By the end of Fiscal Year 2015, the expected total government debt, inclusive of federal, state, and local debt in the United States, was projected to be around $21.694 trillion. This illustrates the scale of borrowing that can be involved when a government runs deficits, spending more annually than its revenue. Debt accumulation, particularly in middle-income nations, can be a problem as these countries borrow externally to fund expansion or growth goals, adding to their national debt.