Based on a $14.3 trillion debt held by the public in mid-2017, a 1-percentage-point increase in the nominal interest rate ultimately increases interest costs by _____
A) 143 billion.
B) 14.3 billion.
C) 1.43 billion.
D) 0.143
E) 0.0143

Question

Quizplus · Accepted Answer

A 1-percentage-point increase in the nominal interest rate would result in an increase of $143 billion in interest costs based on the $14.3 trillion debt held by the public in mid-2017. This is because 1% of $14.3 trillion is $143 billion.