Suppose the stock of government debt in Canada at the end of one fiscal year is $475 billion.If the stock of debt rises to $482 billion by the end of the next fiscal year,then we know that in that year

Question

Quizplus · Accepted Answer

The rise in debt from $475 billion to $482 billion indicates that the government incurred a budget deficit of $7 billion during the fiscal year. It means that the government spent more than it earned through tax revenues and other sources. Therefore, option (C) is the correct answer. Options (A), (B), (D), and (E) are incorrect because they do not accurately represent the situation described in the question.

Suppose the Stock of Government Debt in Canada at the End