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.

Question

Business

Francis Roman

23 May, 07:08

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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Answers (2)

Know the Answer?

Spears · Answer 1

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

Noemi Booth · Answer 2

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