Suppose that the government debt is $100 million at the beginning of the year. If the government collects $45 million in taxes and incurs $50 million in expenditures this year, then the government is experiencing a ________ and the debt will be ________ at the end of the year.

A) deficit, $105 million

B) surplus, $95 millijon

C) deficit, $95 million

D) surplus, $105 million

• From the end of 1997 through 2000, the U.S. budget:

A) was in deficit.

B) was in surplus.

C) was balanced.

D) deficit was decreasing as a percentage of GDP.