A New Country Has Been in Existence for Only Two

Multiple Choice

A new country has been in existence for only two years. In the first year, tax revenues were $1.0 million and outlays were $1.5 million. In the second year, tax revenues were $1.5 million and outlays were $2.0 million. At the end of the second year, the total government debt was

A) $0.5 million.
B) $1 million.
C) $2.5 million.
D) $3.5 million.