Which of the Following Is True About the Relationship Between

Multiple Choice

Which of the following is true about the relationship between the federal budget deficit and the federal debt?

A) Whenever a country has a positive amount of federal debt, it must run a federal budget deficit in that year.
B) As discussed in the textbook, the federal budget deficit represents a real variable, while the federal debt represents a nominal variable.
C) As discussed in the textbook, the federal budget deficit represents a flow variable, while the federal debt represents a stock variable.
D) All of the above are true.
E) None of the above are true.