Suppose the stock of government debt in Canada at the end of one fiscal year is $475 billion.If the stock of debt falls to $461 billion by the end of the next fiscal year,and debt-service payments during that year were $38 billion,then we know that the government had

Question

Quizplus · Accepted Answer

The primary budget surplus is calculated by subtracting the change in debt from the debt-service payments: $475 billion - $461 billion = $14 billion reduction in debt. Adding the $38 billion in debt-service payments gives a primary budget surplus of $52 billion.

Suppose the Stock of Government Debt in Canada at the End