) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:
) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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Question
![) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are
$2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10%
on the debt added on at the end of the year. What would be the public debt at the beginning of the
next year?
Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If
the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the
number in your answer, no units or commas
Answer:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb2d71941-bef1-4470-9d64-9926594b155e%2F0a8122a2-250a-4b2e-add9-4f2c4be8b521%2Fdto3nil_processed.jpeg&w=3840&q=75)
Transcribed Image Text:) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are
$2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10%
on the debt added on at the end of the year. What would be the public debt at the beginning of the
next year?
Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If
the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the
number in your answer, no units or commas
Answer:
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