Assume that in Year 1, a government's expenditure and transfer payments equal $4 billion and its revenue is $4.2 billion; and in Year 2, its expenditure and transfer payments are $5.7 billion and its revenue is $4.5 billion. Which of the following statements is true in this scenario? a The government had a balanced budget in Year 1, and it had a budget deficit in Year 2. b The government had a budget deficit in Year 1, and it had a budget surplus in Year 2. c The government had a budget surplus in Year 1, and it had a budget deficit in Year 2. d The government had a budget deficit in Year 1, and it had a balanced budget in Year 2. e The government had a budget deficit in Year 1 and Year 2