Plans to issue new debt to cover any financing needs

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Consider the following situation for the US economy and answer the following questions. Suppose there are 10 million people living in the US. in 2013, Obama has to spend $8 per capita in wages to government employees and $2 per capita in government expenses related to the Obama care health plan. He knows tax revenues will be $8 per capita. He also has to pay back government debt for $120 millions total (total debt plus interest). Suppose Obama plans to issue new debt to cover any financing needs. How much debt would he have to issue? (only want answer, no explanation needed)

A)120 million

B)130 million

C)140 million

D)150 million

Reference no: EM13833938

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