Suppose in 2009 country X had tax revenues of $550 billion and government expenditures of $700 billion.In addition,as of the end of 2008,its national debt was $6.5 trillion.In 2009,country X had a ________ and at the end of 2009 a public debt of __________.

Question

Quizplus · Accepted Answer

A deficit occurs when the government spends more money than it receives in revenue. In this case, we can find the deficit by subtracting tax revenues from government expenditures:

$700 billion - $550 billion = $150 billion deficit

Next, we need to determine the public debt at the end of 2009. Since we know the national debt at the end of 2008 was $6.5 trillion, we need to add the deficit to this amount:

$6.5 trillion + $150 billion = $6.65 trillion public debt

Therefore, the correct answer is choice C: deficit of $150 billion; $6.65 trillion public debt.

Suppose in 2009 Country X Had Tax Revenues of $550