Suppose the government's initial debt is $425 billion. If for the next three years the government runs deficits of $150, $125, and $200 billion, the government's total debt at the end of the three years will be
A) -$50 billion.
B) $50 billion.
C) $475 billion.
D) $900 billion.

Question

Quizplus · Accepted Answer

The total debt after three years is calculated by adding the initial debt to the sum of deficits over the three years: $425 billion + $150 billion + $125 billion + $200 billion = $900 billion.

Suppose the Government's Initial Debt Is $425 Billion