Choose the most accurate statement from the following:. a) If a country ran budget deficits from 2000 to 2008 and then budget surpluses from 2009 to 2010, then this country would have been in debt at the end of 2010. b) If a country ran budget deficits from 2000 to 2002 and then budget surpluses from 2003 to 2010, then this country would have had no debt at the end of 2010. c) If a country balanced its budget from 2000 to 2010, then this country would have had zero debt at the end of 2010. d) More information is needed to answer the question.

This Question is not complete because its options are not complete as well.

Complete Question

Choose the most accurate statement from the following:

a. If a country ran budget deficits from 2000 to 2008 and then budget surpluses from 2009 to 2010, then this country would have been in debt at the end of 2010.

b. If a country ran budget deficits from 2000 to 2002 and then budget surpluses from 2003 to 2010, then this country would have had no debt at the end of 2010.

c. If a country balanced its budget from 2000 to 2010, then this country would have had zero debt at the end of 2010.

d. All of these scenarios must be true.

e. Any of these scenarios are possible but not necessarily true.

e. Any of these scenarios are possible but not necessarily true.

Explanation:

A budget deficit can be defined as a situation or scenario where the expenses of a government is more than total revenue that they receive or the total revenue that comes to them, from the sale of the products made by the country or the taxes received but the government.

Budget deficit is a situation that can occurs unexpectedly and it can lead to inflation in a government which can then proceed to recession if it is not properly managed.

Budget Surpluses is the opposite of Budget deficit. It is term that is used when the total revenue or income that a government receives is more than the expenses the government has gathered. The excess amount of revenue left can be used for the development of the country.

Budget deficit or surplus can be used to determine the economic health of a country. It is important that all the Budget deficit of a country is cleared or else it could lead to accumulation of debt by the country.

A well balanced budget can help a country avoid debt which is why Ann the scenarios given in option a,b,c is possible but it may not necessarily be true.

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