Suppose the stock of government debt in Canada at the endof year 1 is $475 billion. If the stock of debt falls to $461 billionby the end of year 2 and debt-service payments during year 2were $38 billion, then we know that the government had...O a. A primary budget surplus of $24 billion.O b. An annual budget deficit of $14 billion.O c. A primary budget surplus of $52 billion.O d. An annual budget surplus of $38 billion.O e. A primary budget surplus of $14 billion.

Given Information Debt in 1st Year = $475Debt in 2nd Year = $461 Debt Payment = $38

Suppose the stock of government debt in Canada at the e of year 1 is $475 billion. If the stock of debt falls to $461 bi by the end of year 2 and debt-service payments during yea were $38 billion, then we know that the government had...

Suppose the stock of government debt in Canada at the e of year 1 is $475 billion. If the stock of debt falls to $461 bi by the end of year 2 and debt-service payments during yea were $38 billion, then we know that the government had...

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose the stock of government debt in Canada at the end
of year 1 is $475 billion. If the stock of debt falls to $461 billion
by the end of year 2 and debt-service payments during year 2
were $38 billion, then we know that the government had...
O a. A primary budget surplus of $24 billion.
O b. An annual budget deficit of $14 billion.
O c. A primary budget surplus of $52 billion.
O d. An annual budget surplus of $38 billion.
O e. A primary budget surplus of $14 billion.

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