Suppose the Government Starts with a Debt of $0

question 34

Multiple Choice

Suppose the government starts with a debt of $0. Then in year 1, there is a deficit of $100 billion, in year 2 there is a deficit of $60 billion, in year 3 there is a surplus of $40 billion, and in year 4 there is a deficit of $20 billion. What is government debt at the end of year 4?

• A)$20 billion
• B)$140 billion
• C)$180 billion
• D)somewhat greater than $220 billion, depending on the interest rate
• E)somewhat greater than $140 billion, depending on the interest rate

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Definitions:

Morphine

A powerful opiate analgesic derived from the opium poppy, used to relieve severe pain.

Endorphins

Natural chemicals produced by the body to relieve stress and pain, often leading to feelings of euphoria.

Substance P

A neuropeptide involved in the transmission of pain and other sensory information in the nervous system.

Capsaicin

A chemical compound found in chili peppers that is responsible for their pungent flavor and spicy heat, also used therapeutically for its pain-relieving properties.