If the Government of a Country Owes $3,500 Billion to the International

Multiple Choice

If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows an additional $300 billion this year, it implies that the _____

A) national debt is $300 billion and the fiscal deficit is $3.8 trillion.
B) national debt is $3,800 billion and the fiscal deficit is $300 billion.
C) national debt is $4,100 billion.
D) fiscal deficit is $3,800 billion.
E) national debt and fiscal deficit both equal $3.8 trillion.