Public debt refers to the total amount of money that a government owes to creditors, which can include domestic and foreign entities. This debt accumulates when a government borrows funds to cover budget deficits, often through issuing bonds or other forms of securities. Understanding public debt is crucial as it relates to fiscal policies and the government's ability to finance public services, manage economic stability, and influence growth.
congrats on reading the definition of Public Debt. now let's actually learn it.