Suppose the Federal government had a budget deficit of $80 billion in year 1 and $90 billion in year 2, but had budget surpluses of $40 billion in year 3 and $20 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these 4 years, the Federal government’s public debt would have
A.Increase by $230 billion
B.Decreased by $110 billion
C.Decreased by $57.5 billion
D.Increased by $110 billion
If the government has a spending flow that exceeds the revenues it collects, the government will run a _ year.
A.Deficit
B.Debt
C.Debt and deficit
D.Surplus
A.Increase by $230 billion
B.Decreased by $110 billion
C.Decreased by $57.5 billion
D.Increased by $110 billion
If the government has a spending flow that exceeds the revenues it collects, the government will run a _ year.
A.Deficit
B.Debt
C.Debt and deficit
D.Surplus