Compute its new level of national debt and its new debt-gdp

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Suppose a country has a national debt of $5,000 billion, a GDP of $10,000 billion, and a budget deficit of $100 billion.

How much will its new national debt be?

Compute its debt-GDP ratio.

Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion. Compute its new level of national debt and its new debt-GDP ratio.

Explain your answers for all of these questions (one well composed paragraph for each question).

Reference no: EM13158853

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