A country currently has an outstanding debt of $70 billion. Its current-year expenditures are $17 billion and its tax revenue is $23 billion. Which of the following statements is true? O The country has a budget deficit of $6 billion in the current year and a national debt of $64 billion. The country has a budget deficit of $6 billion in the current year and a national debt of $76 billion. The country has a budget surplus of $6 billion in the current year and a national debt of $64 billion. O The country has a budget surplus of $6 billion in the current year and a national debt of $76 billion.
Added by Miguel W.
Close
Step 1
This is found by comparing the tax revenue and expenditures. Tax revenue = $23 billion Expenditures = $17 billion Since tax revenue > expenditures, the country has a budget surplus. Surplus = Tax revenue - Expenditures = $23 billion - $17 billion = $6 billion Show more…
Show all steps
Your feedback will help us improve your experience
Andrew Davis and 68 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion in year 2, a budget surplus of $ 10 billion in year 3, and a budget deficit of $ 2 billion in year 4. Instructions: Enter your answers as whole numbers. For the absolute size of its public debt, enter your answer as a positive number. A) What is the absolute size of its public debt in year 4? B). If its real GDP in year 4 is $ 104 billion, what is this country's public debt as a percentage of real GDP in year 4?
Andrew D.
National Public Debt Exercise 2 The table below presents the tax revenue and government expenditures for a country. Federal Tax Revenue and Government Expenditures Tax Revenue (billions of dollars) Government Expenditures (billions of dollars) Income tax revenue $1,200 National defense $640 Payroll tax revenue 600 Transfer payments 800 Excise tax revenue 90 Interest on debt 80 Purchases of goods and services 900 Total $ Total $ a. Complete the table above by calculating the total tax revenue and total government expenditures for the year. b. In the current year, the government has a (Click to select) of $ billion. c. If the government has an accumulated debt of $2,600 billion the year before, what will be its debt at the end of the year? $ billion.
Cameron B.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD