What if the net foreign debt were 100 percent of gdp

Assignment Help Econometrics
Reference no: EM131134861

Suppose that the U.S. net foreign debt is 25 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the drain on U.S. GDP (as a percentage) from paying interest on the net foreign debt? Do you think this is a large number? What if the net foreign debt were 100 percent of GDP? At what point do you think a country's government should become worried about the size of its foreign debt?

Reference no: EM131134861

Questions Cloud

What is the pattern of inheritance for each gene : If you cross a male fruit fly that has a black body & is eyeless (both mutations) to female that is homozygous Wild Type at both loci, the F1 progeny are all Wild Type. what is the pattern of inheritance for each gene
Describe the fuction of endocrine and paracrine hormones : Briefly describe the fuction of the following hormones: - Endocrine hormones - Paracrine hormones - Autocrine hormones etc.
What percentage of the progeny would you expect to have : In fruit flies, red eyes (pr+_) are dominant to purple eyes (prpr) and normal wings (vg+_) are dominant to vestigial wings (vgvg). If an F1 individual was test crossed, what percentage of the progeny would you expect to have the WT phenotype
Explain how a time driven abc cost system can be implemented : Discuss how a time driven ABC cost system can be implemented in the company you researched and the benefits that the use will yield to the business performance.
What if the net foreign debt were 100 percent of gdp : What if the net foreign debt were 100 percent of GDP? At what point do you think a country's government should become worried about the size of its foreign debt?
Provide a brief overview of the company and its mission : Provide a brief overview of the company and its mission. List one major issue or event the company had in the past year as discussed in the annual report. Have you read any news on this issue?
Discuss the possible implications for official international : Explain your answer, using hypothetical figures for the current and non-reserve financial accounts. Be sure to discuss the possible implications for official international reserve flows.
What is meant by a gene locus : Is a gene a triplet of consecutive DNA nucleotides? How is the concept of a chromosome related to the concept of the gene? What is meant by a "gene locus"
Using the business model canvas produce a list of hypotheses : Using the attached business model canvas, produce a list of hypotheses- complete a list of metrics you would want to track to test those hypotheses.

Reviews

Write a Review

Econometrics Questions & Answers

  Alculate the optimal consumption and optimal leisure

consider a representative consumer with preferences over consumption and leisure given by U(C,L)=C^2/3 L^1/3 assume that she has a total of h=18 hours a day which she can use for leisure or trade in the market for a wage rate w.

  How many acres should the farmer plant an harvest

A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns, because some are better suited for wheat production than others. The first acre can produce 1000 bushels of wheat.

  How many labors will solander fiji employ

Label the axes, show the units and draw the demand curve as accurately as possible. b. If the wage rate for packers is $7.50 an hour, how many labors will Solander Fiji employ? Explain your answer.

  Will both julia and jacque be better off if pays per meal

Julia can fix a meal in 1 hour, and her opportunity cost of one hour is $50. Jacque can fix the same kind of meal in 2 hours, and his opportunity cost of one hour is $20. Will both Julia and Jacque be better off if she pays him $45 per meal to fix..

  Show the budget constraint and the optimum point

Suppose that you can work anywhere from 0 to 24 hours per day at a wage of $1 per hour. You are subject to a tax of 50% on all income over $5 per day (the first $5 is untaxed). You elect to work 10 hours per day.

  Define was the project successful

( 1) Materials Cost Per Tire (2) Labor Cost Per Tire (3) Average Profit Per Tire (4) % Increase or Decrease in Materials cost Per Tire (5) % Increase or Decrease in Labor cost Per Tire (6) % Increase or Decrease in Average Profit Per ..

  What is the irr of the project in t-marks

The estimated economic results for the project (after taxes), in the foreign currency (T-marks), is shown in the following table for the seven-year analysis period being used. The company requires an 18% rate of return in U.S. dollars.

  What is the variance of the number of calls per hour

Poisson Distribution (8 pts.) 911phone calls arrive at the rate of 30 per hour at the local call center. a. Find the probability of receiving more than two calls in a five-minute interval of time. b. Find the probability that the number of calls.

  Write out the null and alternative hypothesis

How well does the estimated line visually appear to fit the data and on the basis of the appropriate goodness of fit measures, how well does the model fit?

  How would you define globalization

Your readings offered some insight into the forces that drive companies to expand globally. Based upon the readings, what are the three sets of forces that drive, constrain, and shape entities to compete globally?

  How many bakers will doug hire to make 25 tonnes of donuts

Doug wants to go into the donut business. For $500 per month he can rent a bakery complete with all the equipment he needs to make a dozen different kinds of donuts . He must pay unionized donut bakers a monthly salary of $400 each.

  What is the break even price

what is the break even price What is the shut-down price What if cable was currently $70.00 and was lowered to $40.0, how large is the price effect How large would be the quantity effect be What is the profit maximizing qunatity and price for cabl..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd