Based on the increase in Treasury bonds, the change in public debt will be an increase in public debt from $460 billion to $480 billion.
The current public debt is:
= Treasury bills + Treasury notes + Treasury bonds + Savings bonds
= 220 + 80 + 100 + 60
= $460 billion
An increase of $20 billion in Treasury bond will increase the public debt to:
= 460 + 20
= $480 billion
In conclusion, option B is correct.
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