) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:

) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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What does a declining national debt indicate? The government is receiving more money in taxes than it spends in a year. The unemployment rate is declining. The government is spending more money than it receives in taxes for a given year. O The rate of inflation is declining.
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12 Qutstion 2 100 80 60 40 20 O $100200 300 400 500 600 700 800 900 GDP Refer to the diagram, in which Tis tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment GDP is $400 billion while the actual GDP is $200 billion: (Show your calculations) a What is the actual budget deficit? b. What is the cyclically adjusted budget deficit? ( c. The value of cyclically adjusted deficit identifies which type of discretionary fiscal policy? (* For the toolbar, press ALT+F1O (PC) or ALT+FN+F10 (Mac). 三三xX| 1Tk A V *D向Q 5。 Paragranh Arial 10pt !!!