Question:

Deficit and debt difference?

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what is the difference between 'federal debt' and 'federal deficit'. im not an economist so have no idea, please can someone explain it to me simply.

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  1. Debt is accumulated value consisting of deficits (net surpluses) from different periods (also some interest rates could be involved).

    For instance:

    2005 Deficit=5'400

    2006 Deficit=3'200

    2007 Surplus=1'100

    2008 Deficit=2'300

    Debt=5'400+3'200-1'100+2'300 =9'800

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