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If a the government starts with a debt of $1 billion and runs a budget deficit of $8 billion for 8 years, then a surplus of $2 billion for 4 years, and a balanced budget for 7 years,

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 52P: If a government runs a budget deficit of 10 billion dollars each year for ten years, then a surplus...

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If a the government starts with a debt of $1 billion and runs a budget deficit of $8 billion for 8 years, then a surplus of $2 billion for 4 years, and a balanced budget for 7 years, what is the government debt at the end of this time period? Show work.

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