Find out debt to remain constant, Taxation

Use the information provided in question 4 to answer this question.

a) What must happen to taxes in year t for the primary deficit to be zero?

b) What must happen to taxes in year t for the debt to remain constant between years t-1 and t?

c) What must happen to taxes in Year t for the debt to be fully repaid?

 

Posted Date: 3/5/2013 6:12:00 AM | Location : United States







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