Suppose that the government debt is $100 million at the beginning of the year. If the government collects $45 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 millijon
C) deficit, $95 million
D) surplus, $105 million
• From the end of 1997 through 2000, the U.S. budget:
A) was in deficit.
B) was in surplus.
C) was balanced.
D) deficit was decreasing as a percentage of GDP.