What is gross public debt?

Gross public debt refers to the total amount of debt that the government owes to external and internal creditors, without subtracting any financial assets. This includes all federal public debt instruments, such as Treasury bills, notes, and bonds, that are issued to fund government operations and obligations.

Choosing gross public debt as the answer is essential since it encompasses the entirety of the federal government's borrowing, reflecting what is owed by the government. This measurement provides insight into the government’s fiscal position and can influence economic policy, investor confidence, and the costs of servicing this debt in terms of interest payments.

Understanding gross public debt is crucial, particularly in discussions on fiscal responsibility and economic health, as it signals how much a government relies on borrowing to fund its spending. The other options focus on segments or particular conditions of public debt, missing the broader picture of overall federal borrowing, which is pivotal for assessing a nation’s economic situation holistically.