Suppose the government wants to spend $696 billion on goods and services and make $461 billion in transfers this year. If the government has $7,434 billion in debt at the beginning of the year and raises $963 billion in taxes, how much will government debt rise or fall? Assume that the nominal interest rate is 2.55 percent and that the money supply does not change. Report your answer in billions of dollars to 2 decimal places.

Suppose the government wants to spend $696 billion on goods and services and make $461 billion in transfers this year. If the government has $7,434 billion in debt at the beginning of the year and raises $963 billion in taxes, how much will government debt rise or fall? Assume that the nominal interest rate is 2.55 percent and that the money supply does not change. Report your answer in billions of dollars to 2 decimal places.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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