Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4: In the US, public debt as a share of GDP stands at 50% while average interest rate on public debt is 4%. The

image text in transcribed

Question 4: In the US, public debt as a share of GDP stands at 50% while average interest rate on public debt is 4%. The government budget is in primary balance. a. What is the budget deficit as % of GDP? b. What should be the economic growth rate if the fiscal path of the US government is to be sustainable? c. If the US is expected to grow by 1% next year, how much primary surplus would it have run to keep the ration of public debt to GDP stable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Eugene F. Brigham, Phillip R. Daves

8th Edition

0324258917, 9780324258912

More Books

Students also viewed these Finance questions

Question

What are data marts? How do they differ from data warehouses?

Answered: 1 week ago

Question

=+d) Interpret the coefficient of the dummy variable named Q3.

Answered: 1 week ago