If the government owes $15.0 trillion and then borrows $900 billion more this year, this leads to
A) a debt of $900 billion and a deficit of $15.9 trillion.
B) a debt of $15.9 trillion and a deficit of $900 billion.
C) a debt of $14.1 trillion and a deficit of $900 billion.
D) a debt of $15.0 trillion and a deficit of $14.1 trillion.
E) a debt of $15.9 trillion and a deficit of zero.

Question

Quizplus · Accepted Answer

The government's total debt will now be $15.0 trillion + $900 billion = $15.9 trillion. This increase in borrowing (spending more than is earned in revenue) leads to a budget deficit of $900 billion. Therefore, the correct answer is B - a debt of $15.9 trillion and a deficit of $900 billion.

If the Government Owes $15