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Suppose the U.S. net foreign debt is 10 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5
Suppose the U.S. net foreign debt is 10 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the drain on U.S. GDP from paying interest on the net foreign debt? The U.S. net interest payment on its net foreign liabilities will be percent of GDP. (Round your answer to one decimal place.)
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