Suppose the government's initial debt is $350 billion and that during the next two years the government runs deficits of $90 and $40 billion. If during the third year the government has a $70 billion surplus, the government's additional debt at the end of the three years will be
A) $60 billion.
B) $200 billion.
C) $410 billion.
D) $550 billion.

Question

Quizplus · Accepted Answer

The government's additional debt after three years can be calculated by adding the deficits for the first two years and subtracting the surplus in the third year: $90 billion + $40 billion - $70 billion = $60 billion.

Suppose the Government's Initial Debt Is $350 Billion and That