Suppose a country has a national debt of $5,000 billion, a GDP of $20,000 billion, and a
Budget surplus of $130 billion. How much will its new national debt be?

Question

Quizplus · Accepted Answer

The new national debt would be the current national debt ($5,000 billion) plus the budget surplus ($130 billion), which equals $5,130 billion. However, the question asks for how much the new national debt will be, not the total debt, so we need to subtract the budget surplus from the current national debt, which gives us $4,870 billion. Therefore, the best choice is B.

Suppose a Country Has a National Debt of $5,000 Billion