Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4. What is the absolute size of its public debt in year 4? If its real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4?

Q: Would you predict that government expenditures would be higher or lower if taxes (or user charges)…

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Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

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Q: budget deficit and national debt.

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A: find below the answer.

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Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $30 billion…

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Q: 2.8

A:

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Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $ 40 billion…

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Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

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