in the beginning of the year, the economy has public debt (or national debt) of $230 million. this year, tax revenues collected by the government is $65 million and government outlays are $40 million. at the end of the year, this country has public debt (or national debt) of

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21-11-2022
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in the beginning of the year, the economy has public debt (or national debt) of $230 million. this year, tax revenues collected by the government is $65 million and government outlays are $40 million. at the end of the year, this country has public debt (or national debt) of

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tutorconsortium402 tutorconsortium402 · Answer 1 · 2022-11-24T17:46:30+01:00

If the economy has public debt of $230M, tax collection is $65M and government outlays is $40M. Then country has public debt of 230+40-65= $205Million.

What is public debt?

The outstanding debts that a government has taken out from people, businesses, financial institutions, other countries, or international organizations are referred to as public debt or sovereign debt.
The economy is impacted by the sovereign debt in terms of revenues. It affects the country's consumption spending. The acquired money is used for specified financial reasons, and sovereign debts also have an expenditure effect. They are not used to pay for everyday costs.
A sovereign loan taken for an income-generating project, such as building irrigation facilities, is referred to as a productive debt; a loan used to finance a war is referred to as an unproductive debt.

To learn more about public debt

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