The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are intrillions of dollars.June 2007June 2011GDP(Trillions ofDollars)13.715.2Total NationalDebt(Trillions ofDollars)Source: "U.S. Treasury, Bureau of Economic Analysis."8.914.3Debt Held byFederalGovernmentand FederalReserve(Trillions ofDollars)4.74.6Debt Held Outside Fed. Govt. and Fed.ReserveIn June 2007, the percentage of the U.S. national debt held by foreigners wasForeign Ownership(Trillions ofDollars)2.24.5U.S. Ownership(Trillions ofDollars)2.05.2Publicly held debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2007, thepublicly held debt as a percentage of total national debt wasThe fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power ofAmericans. Between 2007 and 2011, the fraction of the national debt held by foreigners

National Debt: The national debt is the aggregate of money that is owned by the federal government…

The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June 2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars. June 2007 June 2011 GDP (Trillions of Dollars) 13.7 15.2 Total National Debt (Trillions of Dollars) Source: "U.S. Treasury, Bureau of Economic Analysis." 8.9 14.3 Debt Held by Federal Government and Federal Reserve (Trillions of Dollars) 4.7 4.6 Debt Held Outside Fed. Govt. and Fed. Reserve Foreign Ownership (Trillions of Dollars) 2.2 4.5 U.S. Ownership (Trillions of Dollars) 2.0 5.2

The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June 2011. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars. June 2007 June 2011 GDP (Trillions of Dollars) 13.7 15.2 Total National Debt (Trillions of Dollars) Source: "U.S. Treasury, Bureau of Economic Analysis." 8.9 14.3 Debt Held by Federal Government and Federal Reserve (Trillions of Dollars) 4.7 4.6 Debt Held Outside Fed. Govt. and Fed. Reserve Foreign Ownership (Trillions of Dollars) 2.2 4.5 U.S. Ownership (Trillions of Dollars) 2.0 5.2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Budget balances and the national debt The following table lists federal expenditures, revenues, and GDP for the U.S. economy during several years. All numbers are in billions of dollars. Revenues Year (Billions of dollars) 1929 3.9 1948 1967 1986 2005 FEDERAL EXPENDITURES AND RE VENUES (Percent of GDP) 25 20 15 10 41.6 Plot the data for revenues and expenditures as a percentage of GDP on the following graph, rounded to the nearest percent. Use the orange points (square symbol) for expenditures and the green points (triangle symbol) for revenues. Line segments will automatically connect the points. 1929 148.8 769.2 2,153.9 Expenditures GDP (Billions of dollars) (Billions of dollars) 3.1 103.6 1948 29.8 157.5 990.4 2,472.2 1987 YEAR 1986 269.2 2005 832.6 4,462.8 12,421.9 Expenditures Δ Revenues ?
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