In year one the federal government experienced a deficit of $25 million.This was followed by two years of surpluses of $30 million and $40 million, respectively.However, in year four the federal government again experienced deficit spending of $35 million.If budget surpluses are used to pay down the debt.At the end of these four years, the federal debt would have

Question

Quizplus · Accepted Answer

Year 1 deficit = -$25 million
Year 2 surplus = +$30 million
Year 3 surplus = +$40 million
Year 4 deficit = -$35 million

Total surplus = $30 million + $40 million = $70 million
Total deficit = $25 million + $35 million = $60 million

Therefore, the net surplus over these four years is $10 million, which would be used to pay down the debt. This means that the federal debt would decrease by $10 million.

In Year One the Federal Government Experienced a Deficit of $25