Suppose that U.S. debt is $100 trillion dollars at the beginning of the fiscal y

Question

Suppose that U.S. debt is $100 trillion dollars at the beginning of the fiscal year. During the fiscal year, the government spending is $7 trillion and government transfers are $2 trillion and tax revenues equal $10 trillion. At the end of the fiscal year, the budget balance is ________ and the national debt is __________ :

-$19 trillion; $81 trillion.

$19 trillion; $119 trillion.

$1 trillion; $99 trillion.

- $1 trillion; 101 trillion.

-$19 trillion; $81 trillion.

$19 trillion; $119 trillion.

$1 trillion; $99 trillion.

- $1 trillion; 101 trillion.

Explanation / Answer

Budget balance = Tax revenue - Governemnt spending - Government transfer = 10-7-2 = 1 trillion dollars

National debt = Opening debt balance - budget balance = 100-1 = 99 trillion dollars.

Answer: $1 trillion; $99 trillion.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.