An economy's total government debt at the end of 2017 is $10 trillion. In 2018, the government spends $2 trillion, and its tax revenue is $1 trillion. What will be the government debt at the end of 2018?

Question

Quizplus · Accepted Answer

The government debt at the end of 2018 will be $11 trillion because the government spent $2 trillion but only received $1 trillion in tax revenue, leading to an increase in debt by $1 trillion from the original $10 trillion.

An Economy's Total Government Debt at the End of 2017