Map Sapling Learning macmillan learning Suppose in 2011, Mexico\'s total governm

Question

Map Sapling Learning macmillan learning Suppose in 2011, Mexico's total government outlays were 534 billion pesos, and total government revenue was 435 billion pesos. Calculate Mexico's budget surplus/deficit and enter it below. Be sure to includea negative sign if appropriate. Number billion pesos Select the answer that best describes the impact that your answer above will have on Mexico's debt. O Mexico's debt will not change. O Mexico's debt vwill fall by an amount equal to the size of the surplus Mexico's debt will rise by an amount equal to the size of the deficit.

Explanation / Answer

Budget Surplus/Revenue = Total Revenue – Total Expenditure

                                         = 435 – 534

                                         = -99 Billion

Government will finance the deficit from additional borrowing, so Mexico’s debt will rise by 99 Billion.

Correct answer is C

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