Question 1

Given the following information find the size of the national debt. Prior to 1985 the country's budget was balanced annually.

Accepted Answer

The answer of Given the following information find the size...

Question 2

Which debt is likely to be a more serious problem? A $110 billion national debt in a country where GDP is $2,000 billion, or a $100 million national debt in a country where GDP is $1,000 million?

Accepted Answer

The answer of Which debt is likely to be a...

Question 3

Suppose that after many years of balancing the budget a country then runs a surplus of $1.5 billion in one year and a deficit of $2 billion the next year. What is the country's national debt?

Accepted Answer

The answer of Suppose that after many years of balancing...

Question 4

Suppose that the government has current financial assets of $500 billion, that government receipts next year will be $3 trillion, and that government outlays next year will be $3.5 trillion. Given an interest rate of 6 percent, what is the one-year fiscal imbalance?

Accepted Answer

The answer of Suppose that the government has current financial...

Quiz 15: Sustained Budget Deficits: Is This Any Way to Run a Government

Given the following information find the size of the national debt. Prior to 1985 the country's budget was balanced annually.

Which debt is likely to be a more serious problem? A $110 billion national debt in a country where GDP is $2,000 billion, or a $100 million national debt in a country where GDP is $1,000 million?

Suppose that after many years of balancing the budget a country then runs a surplus of $1.5 billion in one year and a deficit of $2 billion the next year. What is the country's national debt?

Suppose that the government has current financial assets of $500 billion, that government receipts next year will be $3 trillion, and that government outlays next year will be $3.5 trillion. Given an interest rate of 6 percent, what is the one-year fiscal imbalance?