Assuming which the budget stays the same except

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q. The new nation began fiscal operations this yr also the budget situation is which the government will spend 10 million laves also taxes will be 9 million laves. The 1-million-lav difference will be borrowed from the public by selling 10-yr government bonds paying 5 percent interest. The interest on the outstanding bonds must be added to spending each yr also we assume which additional taxes are raised to cover which interest. Assuming which the budget stays the same except for the interest on the debt for 10 yrs which will be accumulated debt? Illustrate what will the size of the budget be after 10 yrs?

Reference no: EM1315352

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