Business, 25.04.2020 04:00 amandajbrewerdavis
Unlike households, governments are often able to sustain large debts. For example, in 2015, the U. S. government’s total debt reached $18.1 trillion, approximately equal to 100.4% of GDP. At the time, according to the U. S. Treasury, the average interest rate paid by the government on its debt was 1.2%. However, running budget deficits becomes hard when very large debts are outstanding. a. Calculate the dollar cost of the annual interest on the government’s total debt, assuming the interest rate and debt figures previously cited. Enter your answer in billions of dollars, and round to the nearest tenth. Annual interest: $ billion b. If the government operates on a balanced budget before interest payments are taken into account, at what rate must GDP grow for the debt–GDP ratio to remain unchanged? Enter your answer as a percentage and round to the nearest tenth of a percent. Rate of GDP growth: % c. Calculate the total increase in national debt if the government incurs a deficit of $600 billion in 2016. Enter your answer in billions of dollars and round to the nearest tenth. Debt increase: $ billion d. At what rate would GDP have to grow in order for the debt–GDP ratio to remain unchanged when the deficit in 2016 is $600 billion? Enter your answer as a percentage and round your answer to the nearest hundredth of a percent.
Answers: 1
Business, 22.06.2019 01:30
At the end of the week, carla receives her paycheck and goes directly to the bank after work to make a deposit into her savings account. the bank keeps the required reserve and then loans out the remaining balance to a qualified borrower named malik as a portion of his small business loan. malik uses the loan to buy a tractor for his construction business and makes small monthly payments to the bank to payback the principal balance plus interest on the loan. the bank profits from a portion of the interest payment received and also passes some of the interest back to carla in the form of an interest payment to her savings account. in this example, the bank is acting
Answers: 1
Business, 23.06.2019 20:00
What is comparing the cost of a business plan to the monetary value of the benefit derived from the same plan known as?
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Business, 24.06.2019 00:00
Which of the following is not an example of macroeconomics a constructing a city sewer system b tightening the family budget c cutting state income taxes d subsidizing corn farms
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Business, 24.06.2019 02:00
The following scenario is an example of which type of feedback? jan: "i'm sorry that happened. it really doesn't seem fair." 1.person-focused 2.negative 3.low-monitoring 4.supportive
Answers: 3
Unlike households, governments are often able to sustain large debts. For example, in 2015, the U. S...
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