Suppose an economy has a GDP of $40 billion and a national debt of $20 billion, and the average interest rate on this debt is currently 3%.    Calculate the annual interest payments on the debt.     What percentage of this economy’s GDP is spent on interest payments on its debt

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Q: How many trillions of dollars did the government add to the debt in 2022?

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Q: still make all interest payments? r

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Q: A government finances all of its debt through 1-year treasury bonds. This government is able to…

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Q: Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion…

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