Assume we start year 1 with a total government debt of $10 million. What happens at the end of each year?

In year 1 the government spends $425 million and collects $355 million in taxes.

• Public saving in year 1 is equal to $___ million.
• The government debt is equal to $ ___million.

In year 2 the government spends $400 million and collects $380 million in taxes.

• Public saving in year 2 is equal to $____ million.
• The government debt is now equal to $____ million.