The SPENDLAND's GDP and debt last year was $4000 billion and $2000 billion,respectively.This year,the government revenue is $800 billion and the government expenditure is $1000 billion.Suppose the interest rate payable on government debt is 10 percent.
a.What is the debt-GDP ratio for last year? This year?
b.How much did the debt-GDP ratio change?
c.Explain why the debt-GDP ratio changed?

Question

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The Answer of The SPENDLAND's GDP and debt last year was $4000 billion and $2000 billion,respectively.This year,the government revenue is $800 billion and the government expenditure is $1000 billion.Suppose the interest rate payable on government debt is 10 percent.
a.What is the debt-GDP ratio for last year? This year?
b.How much did the debt-GDP ratio change?
c.Explain why the debt-GDP ratio changed?

The SPENDLAND's GDP and Debt Last Year Was $4000 Billion