A country currently has an outstanding debt of $45 billion. Its current-year expenditures are $12 billion and its tax revenue is

Question

3 years ago

5

A country currently has an outstanding debt of $45 billion. Its current-year expenditures are $12 billion and its tax revenue is

$14 billion. Which of the following statements is true? The country has a budget deficit of $2 billion in the current year and a national debt of $43 billion. The country has a budget surplus of $2 billion in the current year and a national debt of $47 billion. The country has a budget surplus of $2 billion in the current year and a national debt of $43 billion. The country has a budget deficit of $2 billion in the current year and a national debt of $47 billion.

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2 answers:

vredina [299] · Answer 1 · 2022-07-29T11:49:08+03:00

vredina [299]3 years ago

7 0

Answer:country has a budget deficit of $2 billion and national debt of $47

zhannawk [14.2K] · Answer 2 · 2022-07-29T10:06:09+03:00

zhannawk [14.2K]3 years ago

6 0

Answer:

Answer is B

there will be budget surplus= 14-12= $2 billion

as we have surplus we can divert this amount to pay out the debt so debt will reduce by 2 billion and remaining debt will be of $ 43 billion