A Country Has Been in Existence for Only Two Years

Multiple Choice

A 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