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4.5.3 Public sector finances

What is the key difference between a fiscal deficit and national debt?

A

A fiscal deficit is a yearly flow of borrowing; national debt is the accumulated stock of borrowing.

B

A fiscal deficit is government tax revenue; national debt is total government spending.

C

A fiscal deficit is the accumulated stock of borrowing; national debt is a yearly flow of borrowing.

D

A fiscal deficit is private-sector borrowing; national debt is household saving.

4.5.3 Public sector finances Flashcards

  1. A Level
  2. /Economics
  3. /4.5.3 Public sector finances

Flashcards for Edexcel A A Level Economics 4.5.3 Public sector finances, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 20 cards, matched to the Edexcel A A Level Economics (9EC0) specification.