What will the size of the budget be after 10 years

Assignment Help Econometrics

Reference no: EM13241607

You are appointed secretary of the treasury of a recently independent country called rugaria. The currency of rugaria is the lav. The new nation began fiscal operations this year, and the budget situation is that the government will spend 10 million lavs and taxes will be 9 million lavs. The 1-million-lav difference will be borrowed from the public by selling 10-year government bonds paying 5 percent interest. The interest on the outstanding bonds must be added to spending each year, and we assume that additional taxes are raised to cover that interest. Assuming that the budget stays the same except for the interest on the debt for 10 years, that will be accumulated debt? What will the size of the budget be after 10 years?

Reference no: EM13241607

Questions Cloud

Is is possible to modify a semantic differential scale into : Is is possible to modify a semantic differential scale into a 10-point scale? If so, should the data be treated as ordinal or interval?

What are the essential weaknesses in evaluation methods : What are the essential weaknesses in each of these evaluation methods?

Calculate all first and second order inclusion probabilities : Calculate all the first and second order inclusion probabilities and find the value of E[n(a)] in two ways

What is the significance of the picture at the top of the : What is the significance of the picture at the top of the t-table? What is the difference between a sample parameter (X-bar and s) and a proportion parameter (n)?

What will the size of the budget be after 10 years : You are appointed secretary of the treasury of a recently independent country called rugaria. The currency of rugaria is the lav. The new nation began fiscal operations this year

Find the number of standing wave : An Argon ion laser has a gain bandwidth of 2 GHz. Find the number of standing wave cavity modes within the gain bandwidth of the argon ion laser

Determine what is the expected value for each project : To evaluate the two projects, you decide to use the company's weighted average cost of capital (WACC) for the less risky project (12 percent) and the WACC plus two points (14 percent) for the more risky project.

Pitfalls of job evaluation methods : Pitfalls of Job Evaluation Methods

Find the average variable cost curve is u-shaped : The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm's short- run cost function for vacuum cleaners using an average variable cost function of the form

User Account

All Pages