China's government debt is $350 billion at the end of 2019 with a 2% inflation rate during the year. At the end of 2020 with an inflation of 5% during the year, the debt is $400 billion. a. what is the nominal deficit in 2020 in billions b.what is the real deficit in 2020 in billions c. what would nominal GDP need to grow by in 2020 to keep the debt to GDP ratio from changing?
China's government debt is $350 billion at the end of 2019 with a 2% inflation rate during the year. At the end of 2020 with an inflation of 5% during the year, the debt is $400 billion. a. what is the nominal deficit in 2020 in billions b.what is the real deficit in 2020 in billions c. what would nominal GDP need to grow by in 2020 to keep the debt to GDP ratio from changing?
Chapter23: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 8SQP
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China's government debt is $350 billion at the end of 2019 with a 2% inflation rate during the year. At the end of 2020 with an inflation of 5% during the year, the debt is $400 billion.
a. what is the nominal deficit in 2020 in billions
b.what is the real deficit in 2020 in billions
c. what would nominal
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