If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows $300 billion more this year,it implies that the:
A)national debt is $300 billion and fiscal deficit is $3.8 trillion.
B)national debt is $3,800 billion and fiscal deficit is $300 billion.
C)national debt is $4,100 billion.
D)fiscal deficit is $3,800 billion.
E)national debt and fiscal deficit both equal $3.8 trillion.

Question

Quizplus · Accepted Answer

The national debt increases to $3,800 billion ($3,500 billion + $300 billion borrowed this year), and the fiscal deficit for the year is the amount borrowed, which is $300 billion.

If the Government of a Country Owes $3,500 Billion to the International