Chapter 12, Problem 3.6P

To determine

Level of net public debt relative to U.S. GDP and Comparison of United States measure with that of other major economies.

Concept Introduction: Public debt is the amount of debt owed by a sovereign government to its creditors. When a country wants to raise money, the primary resource available is for the country to issue debt securities to the public. Public debt securities are items such as Treasury notes, Treasury bills and long-term Treasury bonds. Public debt securities issued by the government can be held by domestic or foreign interests, and the government has an obligation to repay the debt securities when they mature.