What is net new borrowing for 2011?
A) -$70
B) -$35
C) $35
D) $70
E) $105

Question

What is net new borrowing for 2011?
A) -$70 
B) -$35 
C) $35 
D) $70 
E) $105

Quizplus · Accepted Answer

Net new borrowing is calculated as the change in long-term debt from one year to the next, plus any new long-term debt issued. In this case, the long-term debt increased from $1,915 in 2010 to $1,985 in 2011, which is a change of $70. Since there was no new long-term debt issued, net new borrowing for 2011 is $70. Thus, the correct answer is D, $70.

What Is Net New Borrowing for 2011