Define what happens to the level of gross debt

Assignment Help Econometrics
Reference no: EM13222659

Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion:
i. What is the new level of gross national debt?
ii. If 100 percent of this deficit is financed by the sale of securities to the public, what happens to the level of debt held by the public? What happens to the level of gross debt?
iii. If GDP increases by 6 percent in the same year as the deficit is run, what happens to gross debt as a percentage of GDP? What happens to the level of debt held by the public as a percentage of GDP?

Reference no: EM13222659

Questions Cloud

Explain the basic functions of public relations : State the name of the organization and describe what its mission and purpose and explain in detail the facts of the event that generated the negative publicity and why this situation would create negative publicity.
Analyze and compare and contrast the code of ethics : Analyze and compare and contrast the code of ethics of both Starbuck's and McDonald's. List three aspects that you like least about (1) the Starbuck's statement and (2) the McDonald's statement.
Explain an evolution or absorption of heat : do only ionic compounds dissolve with an evolution or absorption of heat...what about molecular compounds like sucrose, glucose, aspartic acid
What are the network perspectives in innovative research : What are the different network perspectives in innovative research? Why do authors differ in how they define innovation networks? How can networks influence actions of its members?
Define what happens to the level of gross debt : Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion: i. What is the new level of gross national debt ii. If 100 percent of this deficit is financed by the sale o..
What is meant by mass customization : What is meant by mass customization? How can market conditions and consumer desires affect customization? Explain any price considerations that must be factored into the mass customization decision.
Explain the correct amount of significant digits : A sample of air contains 2.33 x 10^-4 mg of lead per mL of gas. This air passes through an office, the volume of which is 3.25 x 10^4 L. Seven people normally work in this office. How many mg of lead will each person in the office receive from thi..
What is meant by mass customization : What is meant by mass customization? How can market conditions and consumer desires affect customization? Explain any price considerations that must be factored into the mass customization decision.
Define what happens to the level of gross debt : Now suppose that the gross national debt initially is equal to $2.5 trillion and the federal government then runs a deficit of $100 billion: i. What is the new level of gross national debt ii. If 100 percent of this deficit is financed by the sale o..

Reviews

Write a Review

Econometrics Questions & Answers

  Find the optimal solution of the objective function

a. Find the optimal soulution using the graphical soulution procedure and the value of the objective function b. determine the amount of slack or surplus for each constraint  c. suppose the objective function is changed to max 5A+2B.

  At what price would the number of tickets be sold

If the theater is open, the owners have to pay a fixed nightly amount of $500 to show a film. In addition, the movie house incurs an additional cost of two dollars for each person that attends a movie.

  Compute the standard deviation of the return

Assume that the economy can experience high growth, normal growth, or recession. You expect the following stock market returns for the coming year under these conditions. State Probability Return High Growth 0.2 +30%

  Consumer price index calculation

The agency of Labor Statistics follows 5-steps to calculate Consumer Price Index. Determine three strengths and three weaknesses of the Consumer Price Index calculation.

  Find where demand and supply curves intersect

1. The three fundamental economic questions of what, how, and for whom: a-exist because of scarcity. b-are much more serious in a socialist system. c-are not serious in a capitalistic system. d-are not relevant in the industrialized world of today.

  Is the merger likely to be approved and why

The banking market in Athens, Ohio, currently has four banks with market shares of 60 percent, 20 percent, 15 percent, and 5 percent. The two smallest banks have propesed a meeting. Under the standard merger guidelines of the Federal Reserve.

  What is the size of the labor force

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the size of the labor fo..

  Determine which lease is the preferred one

As an alternative, the company offers a 24-month lease with a single up-font payment of $ 12,780 plus a $500 refundable security deposit. The security deposit will be refunded at the end of 24-month lease.

  Do you appear to have omitted variables

estimate the following cross-sectional model based on data for all 50 states (standard errors in parentheses): Ci^ = 100 - 9.0E+ 1.0i - 0.04T - 3.0V + 1.5R (3.0) (1.0) (0.04) (1.0) (0.5) t = -3.0 1.0 -1.0 -3.0 3.0 where Ci = number of cigarettes c..

  How accurate is the regression equation in predicting sales

A food-products company has recently introduced a new line of fruit pies in six U.S. cities: Atlanta, Baltimore, Chicago, Denver, St. Louis, and Fort Lauderdale. Based on the pie's apparent success, the company is considering a nationwide launch.

  What is difference of the total interest paid over 5 years

Adrian is about to borrow $2350 from his uncle. He has an option to repay the loan at the end of the year 5 with 10.75% interest per year or with 5% interest per year compounded annually. What is the difference of the total interest paid over 5 ye..

  What is the default risk premium on corporate bonds

Suppose 10-year T-bonds have a yield of 5.30% and 10-year corporate bonds yield 6.75%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds, and the maturity risk premium on both Treasury and corporate.

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