Multiple choice

What is debt?

  1. Stock-flow hypothesis

  2. Flow hypothesis

  3. Stock hypothesis

  4. None of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Debt is considered a stock variable in economics because it represents the accumulated value of borrowing at a specific point in time, not a flow over time. Stock variables are measured at a point in time, while flow variables are measured over a period of time.