Question

Suppose in 2009, country X had tax revenues of $550 billion and government expenditures of $700 billion.

In addition, at the end of 2008, its national debt was $6.5 trillion.

In 2009, country X had a _____ and at the end of 2008, a public debt of _____.


Deficit of :


a) surplus of $150 billion; $6.65 trillion


b) surplus of $150 billion; $6.35 trillion


c) deficit of $150 billion; $6.35 trillion


d) deficit of $150 billion; $6.65 trillion

Answer 1

Option (d) is correct.

Step-by-step explanation:

In 2009, country X had:

Tax revenues = $550 billion

Government expenditures = $700 billion

National debt = $6.5 trillion

Deficit = Expenses - Revenues

= $700 billion - $550 billion

= $150 billion

Public Debt = National debt + Deficit

= $6.5 trillion + 0.15 trillion

= $6.65 trillion

Therefore, the country X had a Deficit of $150 billion and at the end of 2008, a public debt of $6.65 trillion.