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Suppose the Stock of Government Debt in Canada at the End

Question 12

Multiple Choice

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


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

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