4. The public debt - Ownership The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June 2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars. June 2007 June 2011 GDP (Trillions of Dollars) 13.7 15.2 Total National Debt (Trillions of Dollars) 8.9 14.3 Source: "U.S. Treasury, Bureau of Economic Analysis." Debt Held by Federal Government and Federal Reserve (Trillions of Dollars) 4.7 4.6 Debt Held Outside Fed. Govt. and Fed. Reserve Foreign Ownership (External U.S. Ownership (External National Debt) National Debt) (Trillions of Dollars) (Trillions of Dollars) 2.2 4.5 2.0 In June 2007, the percentage of the U.S. national debt held by foreigners (external national debt) was 5.2 Net public debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2007, the net public debt as a percentage of total national debt was The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of Americans. Between 2007 and 2011, the fraction of the national debt held by foreigners
4. The public debt - Ownership The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June 2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars. June 2007 June 2011 GDP (Trillions of Dollars) 13.7 15.2 Total National Debt (Trillions of Dollars) 8.9 14.3 Source: "U.S. Treasury, Bureau of Economic Analysis." Debt Held by Federal Government and Federal Reserve (Trillions of Dollars) 4.7 4.6 Debt Held Outside Fed. Govt. and Fed. Reserve Foreign Ownership (External U.S. Ownership (External National Debt) National Debt) (Trillions of Dollars) (Trillions of Dollars) 2.2 4.5 2.0 In June 2007, the percentage of the U.S. national debt held by foreigners (external national debt) was 5.2 Net public debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2007, the net public debt as a percentage of total national debt was The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of Americans. Between 2007 and 2011, the fraction of the national debt held by foreigners
Chapter12: Federal Budgets And Public Policy
Section: Chapter Questions
Problem 3.8P
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Transcribed Image Text:4. The public debt - Ownership
The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June
2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in
trillions of dollars.
June 2007
June 2011
GDP
(Trillions of
Dollars)
13.7
15.2
Total
National
Debt
(Trillions of
Dollars)
8.9
14.3
Source: "U.S. Treasury, Bureau of Economic Analysis."
Debt Held by
Federal
Government
and Federal
Reserve
(Trillions of
Dollars)
4.7
4.6
Debt Held Outside Fed. Govt. and Fed. Reserve
Foreign Ownership (External U.S. Ownership (External
National Debt)
National Debt)
(Trillions of Dollars)
(Trillions of Dollars)
2.2
4.5
2.0
In June 2007, the percentage of the U.S. national debt held by foreigners (external national debt) was
5.2
Net public debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2007, the net
public debt as a percentage of total national debt was
The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of
Americans. Between 2007 and 2011, the fraction of the national debt held by foreigners
Transcribed Image Text:In June 2007, the percentage of the U.S. national debt held by foreigners (external national debt) was
The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of
Americans. Between 2007 and 2011, the fraction of the national debt held by foreigners
The absolute level of the debt does not necessarily provide a clear indication of a nation's debt burden. Thus, economists often look at relative
measures of the national debt. One possible relative measure of the national debt is the federal debt held by the public (outside the federal
government and the Federal Reserve) as a percentage of GDP. In 2007, publicly held debt was
of GDP. Between 2007 and 2011, publicly
held debt as a percentage of GDP
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