9 Suppose the federal government had budget deficits of $40 billion in year 1 and $100 billion in year 2 but had budget surpluses of $20 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have 1:12:10 J nok Multiple Choice O decreased by $70 billion Increased by $140 billion. decreased by $70 billion. Increased by $70 billion

9 Suppose the federal government had budget deficits of $40 billion in year 1 and $100 billion in year 2 but had budget surpluses of $20 billion in year 3 and $50 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have 1:12:10 J nok Multiple Choice O decreased by $70 billion Increased by $140 billion. decreased by $70 billion. Increased by $70 billion

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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