Suppose the economy grows at an average of 7% per year and the debt-to-GDP ratio is 1. Roughly, how much should the budget deficit be to maintain the same debt-to-GDP ratio if real GDP amounts to P250 billion?
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- Is it possible for a nation to run budget deficits and still have its debt GDP ratio fall? Explain your answer. Is it possible for a nation to run budget surpluses and still have its debt GDP ratio rise? Explain your answer.A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of 400 million. In year two, the government runs a deficit of 1 billion. In year three, the government runs a surplus of 200 million. What is the total debt of the government at the end of year three?Determine the state of the budget (in deficit, in balance, in surplus), if: Government spending on the economy is 5000 monetary units, while rate of taxes incomes is 7000 monetary units. Public transfers are purchased in the amount of 1100 monetary units. The national debt is 9000 monetary units, so the State spends 10% per annum to pay this loan off.
- If the real interest rate on government bonds is three percent, real GDP grows at one percent, the current debt-to-GDP ratio is forty percent and the primary budget deficit as a percentage of GDP is two percent, then the debt-to-GDP ratio will rise in a year by _____ percentage points. a. 82 b. 0.82 c. 2.8 d. 8.2 e. 0.28In the context of fiscal policy and its impact on national debt, consider a government that decides to implement an expansionary fiscal policy during a period of high national debt. What is the most likely immediate impact of this policy on the country's debt-to-GDP ratio, assuming all other factors remain constant? A) The debt-to-GDP ratio will decrease due to increased economic growth. B) The debt-to-GDP ratio will increase as government spending adds to the debt. C) The debt-to-GDP ratio will remain unchanged as fiscal policy does not affect national debt. D) The debt-to-GDP ratio will first decrease then increase due to delayed inflationary effects. Don't use chatgpt please provide valuable answerPublic debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 1, a budget deficit of $20 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year What is the absolute size of its public debt in year 4? If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? Should fiscal policy be counter-cyclical?
- 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?Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 1, a budget deficit of $20 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year What is the absolute size of its public debt in year 4? 40+20+(-10)+2 40+20-10+2 52 billion 2) If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? If the real GDP in year 4 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 4? Should fiscal policy be counter-cyclical? Please answer everything asked on question 2, thank youSuppose that the existing stock of debt in Outland is $500500 billion, and the government expects to collect $184184 billion as net tax revenues. If the interest rate in this economy is 11 percent and the government wants to decrease its existing stock of debt by $4040 billion this year, then what should the government run this year?
- Public debt is the sum of deficits and surpluses (negative deficits) over time. Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 1, a budget deficit of $20 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year What is the absolute size of its public debt in year 4?The interest requirement as per the government budget during a year is ₹1,40,000 crores. If the total borrowing requirements of the government are estimated at ₹2,70,000 crores, then how much is the primary deficit?Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion. What is the new level of gross national debt? If 100 percent of this deficit is financed by the sale of securities to the public, what happens to the level of debt held by the public? What happens to the level of gross deb