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Suppose the Stock of Government Debt in Canada at the End

Question 28

Multiple Choice

Suppose the stock of government debt in Canada at the end of fiscal Year 1 is $475 billion.If the stock of debt rises to $482 billion by the end of fiscal Year 2,then we know that during Year 2


A) debt-service payments rose by $7 billion.
B) the government had a primary budget surplus of $7 billion.
C) the government had an annual budget deficit of $7 billion.
D) the government had a primary budget deficit of $7 billion.
E) tax revenues decreased by $7 billion.

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