Revenues $100 billion $100 billion $100 billion $100 billion $200 billion Expenditures $100 billion $250 billion $150 billion $150 billion $150 billion Year 0 debt = $200 billion Year 1 Year 2 Year 3 Year 4 Year 5 At the completion of year 4, which is true? the government's deficit increased by $50 billion the government experienced zero deficit growth the government's deficit increased has by $150 billion the government's debt increased by $150 billion two of the above are correct
Revenues $100 billion $100 billion $100 billion $100 billion $200 billion Expenditures $100 billion $250 billion $150 billion $150 billion $150 billion Year 0 debt = $200 billion Year 1 Year 2 Year 3 Year 4 Year 5 At the completion of year 4, which is true? the government's deficit increased by $50 billion the government experienced zero deficit growth the government's deficit increased has by $150 billion the government's debt increased by $150 billion two of the above are correct
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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