Suppose that the government debt is $100 million at the beginning of the year. If government collects $55 million in taxes and incurs $50 million in expenditures this year, then the government is experiencing a ________ and the debt will be ________ at the end of the year.
A. deficit, $105 million
B. surplus, $95 million
C. deficit, $95 million
D. surplus, $105 million
Answer:B
Suppose that the government debt is $100 million at the beginning of the year. If government collects $55 million in taxes and incurs $50 million in expenditures this year, then the government is experiencing a ________ and the debt will be ________ at the end of the year.
A. deficit, $105 million B. surplus, $95 million C. deficit, $95 million D. surplus, $105 million