What are the deficit/gdp ratio and debt/gdp ratio

Reference no: EM131130710

Debt and Deficits in Belgium. Here are some data for Belgium in 1989: GDP: 6,160 billion Belgian francs Debt: 6,500 billion Belgian francs 17.1 Deficit: 380 billion Belgian francs Interest Rate on Bonds: 8.5 percent Use the data to answer the following questions:

a. What are the deficit/GDP ratio and debt/GDP ratio? How do these ratios compare to the same ratios in the United States today? To what period in U.S. history does the debt/GDP ratio in Belgium correspond?

b. Approximately how much of the budget in Belgium is devoted to interest payments on its debt? If Belgium could wipe out its debt overnight, what would happen to its current budget deficit?

Reference no: EM131130710

Questions Cloud

Calculate the variance of the number of persons : We suppose that the traffic at a point along a certain road can be described by a Poisson process with parameter λ = 2 per minute and that 60% of the vehicles are cars, 30% are trucks, and 10% are buses. We also suppose that the number K of person..

How might you apply what you learned in your interview : Identify some of the significant challenges you believe you might face when it comes to suggesting and seeing innovations through in the organizations in which you are or may be involved?

Cost of capital and capital structure : Two firms, A and B, both produce widgets. The price of widgets is $1 each. Firm A has total fixed costs of $500,000 and variable costs of 50¢ per widget. Firm B has total fixed costs of $240,000 and variable costs of 75¢ per widget. The corporate tax..

Number of accidents at a specific intersection in interval : Let N(t) be the number of accidents at a specific intersection in the interval [0,t]. We suppose that {N(t),t ≥ 0} is a Poisson process with rate λ1 = 1 per week. Moreover, the number Yk of persons injured in the Kth accident has (approximately) a ..

What are the deficit/gdp ratio and debt/gdp ratio : Approximately how much of the budget in Belgium is devoted to interest payments on its debt? If Belgium could wipe out its debt overnight, what would happen to its current budget deficit?

What price must the state sell its bonds assume no cash : An Iowa state savings bond can be converted to $100 at maturity 6 years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 8% annual interest (compounded annually), at what price must the state sell its bonds? ..

Describe why believe you believe your example demonstrates : Describe why you believe you believe your example demonstrates great supply chain management, including the impact on the customers of the cited supply chain system.

Telephone calls to an emergency number arrive : where t is in hours, and λ{t) = λ{t - 24), for t ≥ 24. Furthermore, the duration (in minutes) of a call received at night has a uniform distribution on the interval (0,2], whereas the duration of a call received during the day has

The probability of counting an event occurring : Let {N(t),t ≥ 0} be a Poisson process with rate λ = 2. Suppose that all the events that occur in the intervals (2k, 2k + 1], where k ∈ {0,1,2,...}, are counted, whereas the probability of counting an event occurring in an interval of the form {2k+1,2..

User Account

All Pages