In the United States the national debt refers to the deficit in spending for all local budgets the annual deficits of the federal government the combined budget deficits of the world None of the above

## Step 1<br />The term "national debt" in the United States refers to the total amount of money that the federal government owes to its creditors. This debt is accumulated over time due to the federal government budget deficits. <br /><br />## Step 2<br />A budget deficit occurs when the federal government spends more money than it receives in revenue. This difference between spending and revenue is the annual deficit.<br /><br />## Step 3<br />The national debt is not the sum of all local budgets' deficits, nor is it the combined budget deficits of the world. It is specifically the total amount of money that the federal government owes to its creditors.