Assume a country's nominal GDP is $600 billion, government expenditures less debt service are $145 billion, and revenue is $160 billion. The nominal debt is $360 billion. Inflation is 3 percent and interest rates are 6 percent. Instructions: Enter your responses rounded to decimal place. To indicate a deficit, be sure to use a negative (-) sign before the value. a. Calculate debt service payments. $21.6 billion b. Calculate the nominal deficit or surplus. billion c. Calculate the real deficit or surplus. $11.4 6.6 billion

Assume a country's nominal GDP is $600 billion, government expenditures less debt service are $145 billion, and revenue is $160 billion. The nominal debt is $360 billion. Inflation is 3 percent and interest rates are 6 percent. Instructions: Enter your responses rounded to decimal place. To indicate a deficit, be sure to use a negative (-) sign before the value. a. Calculate debt service payments. $21.6 billion b. Calculate the nominal deficit or surplus. billion c. Calculate the real deficit or surplus. $11.4 6.6 billion

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter23: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 8SQP

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