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Multiple Choice

Which option equals gross debt outside the debt limit?

The key idea is that gross debt can be split into two parts: debt that sits within the limit and debt that sits outside the limit. The amount outside the limit is what remains once you subtract the inside-the-limit portion from the total gross debt. So the expression that reflects this subtraction from the total to isolate the outside portion is the best match. This is why the option shown is correct: it uses gross debt and subtracts the relevant portion tied to the limit to yield the debt outside the limit. The other choices refer to different concepts or don’t express the relationship between gross debt and the limit in this way.

The key idea is that gross debt can be split into two parts: debt that sits within the limit and debt that sits outside the limit. The amount outside the limit is what remains once you subtract the inside-the-limit portion from the total gross debt. So the expression that reflects this subtraction from the total to isolate the outside portion is the best match. This is why the option shown is correct: it uses gross debt and subtracts the relevant portion tied to the limit to yield the debt outside the limit. The other choices refer to different concepts or don’t express the relationship between gross debt and the limit in this way.