Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a Jbudget surplus of $130 billion. How much will its new national debt be?

Question

Quizplus · Accepted Answer

The budget surplus means that the country is taking in more revenue than it is spending, so it can use this surplus to reduce the national debt. The new national debt would be the current debt minus the budget surplus, so $5,000 billion - $130 billion = $4,870 billion.

Suppose a Country Has a National Debt of $5,000 Billion