What is the growth rate of its debt

Assignment Help Business Economics

Reference no: EM13801742

Suppose a government has an initial debt of $5 trillion and the nominal rate of interest is 5%.

(A) if government keep primary budget in balance, what is the growth rate of its debt?

(b) if government keeps its total budget in balance, what s the growth rate of its debt?

Reference no: EM13801742

Questions Cloud

How information is used and how it flows in an organization : Write a 700- to 1,050-word paper identifying and describing how information is used and how it flows in an organization

Contents of the product table : To list all the contents of the PRODUCT table, you would use and When you issue the DELETE FROM tablename command without specifying a where condition

Examine structures rather than describing them with text : The ____ model was developed to allow designers to use a graphical tool to examine structures rather than describing them with text

What policy response would you recommend to fed : Suppose economy starts with GDP at potential, the real interest rate and marginal product of capital both equal to 3% ad a stable inflation rate of 2%. Analyze the effect of this shock in IS/MP diagram. What policy response would you recommend to fed..

What is the growth rate of its debt : Suppose a government has an initial debt of $5 trillion and the nominal rate of interest is 5%. if government keep primary budget in balance, what is the growth rate of its debt? if government keeps its total budget in balance, what s the growth rate..

What contributes to the belief in conspiracy theories : Many conspiracy theories have been offered as explanations for the assassinations of the great leaders of the 1960s and still fascinate society today. Share some of those conspiracy theories. What contributes to the belief in conspiracy theories?

Cost of production for that quantity produced : If the price that a firm charges is higher than its ________________ cost of production for that quantity produced, then the firm will earn profits.

Explain what is meant by the term informational asymmetries : Please explain what is meant by the term informational asymmetries. What problems can these asymmetries create for participants in the money and capital markets and the financial system?

Can inflation cause or effect unemployment : What factors can contribute to unemployment? How can technology lead to greater unemployment, or is it a benefit to the economy? Can inflation cause or effect unemployment? How?

User Account

All Pages