Question
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $30 billion in year 2,a budget surplus of
Suppose that a country has no public debt in year 1 but experiences a budget deficit of $30 billion in year 2,a budget surplus of $20 billion in year 3, and a budget deficit of $2 billion in year 4.
Instructions:In part a, enter your answer as a whole number. For the absolute size of the public debt, enter your answer as a positive number. In part b, round your answer to 2 decimal places.
a. What is the absolute size of its public debt in year 4?
$(how much) billion
b. If its real GDP in year 4 is $104 billion, what is this country's public debt as a percentage of real GDP in year 4?
(What % ) percent
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started