Consider the following economy. Government Debt, end of 2026: 400 Nominal interest rate on government debt: 2.0% 2027 inflation rate: 5% 2027 nominal GDP: 1000 Tax rate: 25% 2027 Government Expenditures: 368 2027 Net Government Transfers: 248 What is the government's debt at the end of 2027? (Round to one decimal place and do not enter the $ sign. If your answer is $6.14, enter 6.1. If your answer is $6.15, enter 6.2. If appropriate, remember to enter the - sign.)

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter30: Government Budgets And Fiscal Policy
Section: Chapter Questions
Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...
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Consider the following economy. Government Debt, end of 2026: 400 Nominal interest rate on government debt: 2.0% 2027 inflation rate: 5% 2027 nominal GDP: 1000 Tax rate: 25% 2027 Government Expenditures: 368 2027 Net Government Transfers: 248 What is the government's debt at the end of 2027? (Round to one decimal place and do not enter the $ sign. If your answer is $6.14, enter 6.1. If your answer is $6.15, enter 6.2. If appropriate, remember to enter the - sign.)
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