Suppose the stock of government debt in Canada at the end of one fiscal year is $475 billion. If the stock of debt falls to $461 billion by the end of the next fiscal year, then we know that in that year
A) debt- service payments fell by $14 billion.
B) the government had a primary budget surplus of $14 billion.
C) the government had a primary budget deficit of $14 billion.
D) tax revenues increased by $14 billion.
E) the government had an annual budget surplus of $14 billion.
Correct Answer:
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