Suppose the Government's Initial Debt Is $425 Billion

question 59

Multiple Choice

Suppose the government's initial debt is $425 billion. If for the next three years the government runs deficits of $150, $125, and $200 billion, the government's total debt at the end of the three years will be

• A) -$50 billion.
• B) $50 billion.
• C) $475 billion.
• D) $900 billion.

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Definitions:

Linear Thinking

A thought process that follows a straight, direct path to reach a conclusion or solution, often focusing on sequential steps.

Causality

The relationship between a cause and its effect, where one event is understood to be a consequence of the other.

Sophisticated

Having a refined knowledge of the world, complex or developed in a way that is not immediately obvious.

Centrated Thinking

A cognitive phenomenon in early childhood, where a child focuses on one aspect of a situation while neglecting others, indicative of preoperational thinking according to Jean Piaget.