Correct Answer: The national debt

Solution : The correct answer is (b) The national debt.

The national debt refers to the total amount of money owed by a government, usually the central government, resulting from accumulated budget deficits over time. It represents the cumulative amount of borrowing that a government has undertaken to finance its expenses when its expenditures exceed its revenues.

The national debt is typically incurred through the issuance of government bonds and other forms of borrowing. It reflects the outstanding financial obligations of the government to its creditors, which can include individuals, domestic and foreign investors, financial institutions, and other governments.

The national debt is an important indicator of a government's fiscal health and its ability to manage its finances. It is typically expressed as a gross or net amount and is often measured as a percentage of a country's gross domestic product (GDP) to assess its relative size and sustainability.