) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:

) If at the beginning of the year the public debt is $20 trillion, government spending and transfers are $2 trillion, and tax revenues are $3 trillion in 2019. Suppose that there is an annual interest rate of 10% on the debt added on at the end of the year. What would be the public debt at the beginning of the next year? Instructions: If the answer is not a whole number you should leave one number after the decimal. E.g. If the answer is 10.2778 it can be entered as 10.3. Leave your answer in trillions. You just need to put the number in your answer, no units or commas Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7.
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