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Suppose That the Government Has Current Financial Assets of $500

Question 84

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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?

Correct Answer:

verifed

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FIt = PVFOt - PVFRt - CVFAt,
The fiscal ...

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