Amount of debt held by the public

Assignment Help Business Economics

Reference no: EM139127

Get an answer from tutors to this homework question now:

Assume which the gross national debt initially is equal to $3 trillion and the federal government then runs a deficit of $300 billion.

i. Illustrate what is the new level of gross national debt?

ii. If 100 percent of the deficit is financed by the sale of securities to federal agencies, Illustrate happens to the amount of debt held by the public? Illustrate what happens to the level of gross debt?

iii. If GDP increased by 5 percent In the same year which the deficit is run, Illustrate what happens to the GDP? Illustrate what happens to the level of debt held by the public as a percentage of GDP?

Reference no: EM139127

Questions Cloud

New long-run equilibrium values : Illustrate what are the new long-run equilibrium values of these three variables.

Output and the cost level play in this adjustment : Explicate Illustrate what will happen to output and the cost level play in this adjustment.

Seats should be protected for full-fare passengers : Explain how many seats should be protected for full-fare passengers.

Size of the economys recessionary- inflationary gap : illustrate what was the size of the economy's recessionary, inflationary gap

Amount of debt held by the public : Illustrate happens to the amount of debt held by the public. Illustrate what happens to the level of gross debt.

Evaluate the impact globalization on domestic governance : Evaluate the impact globalization on domestic governance. Identity and explicate at least three significant factors requiring domestic changes.

Istinguish high-ability workers from low-ability workers : Assume which, in the efficiency wage model, it becomes more difficult for the ?rm to distinguish high-ability workers from low-ability workers in the labor market.

Aggregate economic effects of the combination : Find out the aggregate economic effects of the combination of the shock to the economy and the government's response to it.

Performance of the consolidated company : Analyze the reasons for and against the merger and assess the actual performance of the consolidated company against the pre-merger expectations.

User Account

All Pages