If government has no debt initially but then has annual revenues of $1.5 billion for 10 years and annual expenditures of $1.6 billion for 10 years, then the government has a:
A. deficit of $100 million and a debt of $1 billion per year.
B. deficit of $100 million per year and a debt of $1 billion.
C. surplus of $100 million per year and a debt of $1 billion.
D. surplus of $100 million and a debt of $1 billion per year.
Answer: B
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What will be an ideal response?
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