Question

Security Amount (in Billions) Treasury Bills $220 Corporate Bonds 140 Treasury Notes 80 Corporate Stock 200 US Savings Bonds 60 Treasury Bonds 100 Other things equal, an increase of Treasury bonds from $100 billion to $120 billion in the economy would:

Answer 1

Answer:

increase the public debt from $460 billion to $480 billion

Explanation:

Other things equal an increase of treasury bonds from $100 billion to $120 billion in the economy would:

"increase the public debt from $460 billion to $480 billion"

Since the public debt consists of the debt instruments issued by the US goverment, thus, Treasury Bills, Tresaury Notes, Treasury Bonds and U.S. Savings Bonds would constitue public debt, the sum of which would be $460 billion and an increase in treasury bonds from $100 billion to $120 billion would increase the public debt by $20 biilion to $480 billion.