If the government owes $3,500 billion and then borrows $300 billion more this year,
A)the debt is $300 billion and the deficit is $3.8 trillion
B)the debt is $3,800 billion and the deficit is $300 billion
C)the debt is $4,100 billion
D)the deficit is $3,800 billion
E)both the debt and the deficit are $3.8 trillion

Question

Quizplus · Accepted Answer

The total debt after borrowing $300 billion more this year would be $3,500 billion + $300 billion = $3,800 billion. The deficit is the amount by which the expenditures exceed the revenues in a given year, which in this case is $300 billion.

If the Government Owes $3,500 Billion and Then Borrows $300