Suppose that at the end of 2014, the government holds debt of $150 billion, has collected tax revenue of $50 billion, and has spent $75 billion. The national debt at the beginning of 2015 is:

Question

Quizplus · Accepted Answer

The national debt at the beginning of 2015 is calculated by adding the deficit of 2014 to the debt at the end of 2014. The deficit is the difference between spending ($75 billion) and tax revenue ($50 billion), which is $25 billion. Adding this to the existing debt of $150 billion results in a total of $175 billion.

Suppose That at the End of 2014, the Government Holds