In 2005, the nominal interest rate on bonds was 5 percent a year and the real interest rate was 2 percent a year. Investment was $2.7 trillion and the government budget deficit was $0.5 trillion.
In 2005, the nominal interest rate on bonds was 5 percent a year and the real interest rate was 2 percent a year. Investment was $2.7 trillion and the government budget deficit was $0.5 trillion.
Chapter13: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 3SQ
Related questions
Question
Transcribed Image Text:In 2005, the nominal interest rate on bonds was 5 percent a year and the real interest rate was 2 percent a year.
Investment was $2.7 trillion and the government budget deficit was $0.5 trillion.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
