Suppose that at the end of 2019, the government has a national debt of $150 billion, has collected tax revenue of $50 billion, and has spent $75 billion. The national debt at the beginning of 2020 is

Question

Quizplus · Accepted Answer

The national debt at the end of 2019 would increase by the amount of deficit incurred in that year. The deficit is the difference between what the government spends ($75 billion) and what it collects in tax revenue ($50 billion), which is $25 billion. Adding this deficit to the initial national debt of $150 billion results in a new debt of $175 billion at the beginning of 2020.

Suppose That at the End of 2019, the Government Has