If the Government Runs a Primary Deficit in Year Zero

Multiple Choice

If the government runs a primary deficit in year zero of B0,and,in year 1,decides to stabilize the debt (i.e.,prevent the deficit from rising any further) ,then in year 1 and beyond,it must run a primary surplus equal to

A) zero.
B) B0.
C) (1+r) B0.
D) r.
E) none of the above