Is the USA a democracy or a republic?

If my understanding is correct, a democracy is a system of government in which the populace votes directly on issues. A republic is a system of government in which the populace elects a body of representatives who are the ones that decide issues.

I see both methods at work in the US Government. Voters are given the opportunity to vote on individual issues, and voters can also elect representatives who decide issues.

So which is the USA: a democracy or a republic?

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