Suppose that the federal government had a budget deficit of $80 billion in year 1 and $90 billion in year 2, but that it experiences budget surpluses of $40 billion in year 3 and $30 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have
A) decreased by $100 billion.
B) increased by $240 billion.
C) increased by $100 billion.
D) decreased by $240 billion.
Correct Answer:
Verified
Q24: Suppose that the federal government had a
Q25: A government budget surplus occurs during a
Q26: When government spending exceeds tax revenues during
Q27: If the government has a spending flow
Q28: Between 2000 and 2017, the U.S. government
Q30: Which of the following will NOT cause
Q31: A government budget surplus is
A) a situation
Q32: The public debt can be thought of
Q33: Which of the following is TRUE when
Q34: If the government has no debt initially,
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