If a government had a debt of $300 billion and then ran deficits of $200 billion each year for the next three years, by the end of the third year its total debt would be
A) -$300.
B) $300 billion.
C) $600 billion.
D) $1,200 billion.

Question

Quizplus · Accepted Answer

If a government had a debt of $300 billion and then ran deficits of $200 billion each year for the next three years, the total debt would increase by $200 billion each year. Therefore, at the end of the third year, the total debt would be the sum of the initial debt and the accumulated deficits:
$300 billion + $200 billion + $200 billion + $200 billion = $900 billion
Therefore, the correct answer is D) $1,200 billion.

If a Government Had a Debt of $300 Billion and Then