QUESTION 6

1. Uruguay is a small country in Latin America. GDP is 100. Debt is 100. Government spending on goods and services is 30. Taxes are 30. Interest payments on the debt are 5. GDP is growing at four percent per year. Using this information, the primary deficit is
2. zero123None of the above.

5 points

QUESTION 7

1. Using the information in question 6 calculate the overall deficit. The answer is.
2. Zero2.365None of the above

5 points

QUESTION 8

1. Using the information in question 6 calculate debt next year. The answer is.
2. 10010599.51.03None of the above.

5 points

QUESTION 9

1. Using the information from 6, it follows that the ratio of debt to GDP is
2. Increasing over timeIs constant over timeIs falling over timeWe do not have enough information to answerIncreases and then decreases