Maurice Tutor

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About Maurice Tutor

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Expertise:
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Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 407 Weeks Ago, 6 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 09 Feb 2018 My Price 6.00

budget deficits

Unlike households, governments are often able to sus-tain large debts. For example, in 2013, the U.S. govern-ment’s total debt reached $17.3 trillion, approximatelyequal to 101.6% of GDP. At the time, according to the
U.S. Treasury, the average interest rate paid by the
government on its debt was 2.0%. However, running
budget deficits becomes hard when very large debts are
outstanding.
a. Calculate the dollar cost of the annual interest on
the government’s total debt assuming the interest
rate and debt figures cited above.
b. If the government operates on a balanced budget
before interest payments are taken into account, at
what rate must GDP grow in order for the debt–GDP
ratio to remain unchanged?

Answers

(5)
Status NEW Posted 09 Feb 2018 10:02 PM My Price 6.00

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