. The US Treasury received $1 trillion in tax payments. It spent $850 billion on current goods and services plus transfer payments and interest on existing bonds. It spent $200 billion on capital projects (such as highways and medical research). Which of the following is correct?

It has a surplus of $150 billion but must issue $50 billion in new bonds

It has a deficit of $50 billion and must issue $50 billion in new bonds

It has a deficit of $50 billion and must issue $150 billion in new bonds

It has a surplus of $150 billion and can pay off $150 billion in existing bonds