Calculate the primary deficit, Cost Accounting

Assignment Help:

Assume B, G and T are in real terms (and in billions of dollars).

Bt-1 = 1000      Gt= 220           Tt= 200            it = .15    πt = .10

a) Calculate the official measure of the deficit in year t.

b) Calculate the correct (i.e. inflation adjusted) measure of deficit in year t.

c) Calculate the primary deficit in year t.

d) Discuss what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.

e) To what extent does the official measure of the deficit overstate the correct measure?

f) Given the above information, what will happen to the level of debt between years t-1 and t? Explain

 


Related Discussions:- Calculate the primary deficit

Determine the interest expense is deductible, Assume the same facts as in 1...

Assume the same facts as in 1A above, except that the interest payment checks were placed on the shareholders' office on December 31, 2012. However, the shareholders are not in the

Case study, Managerial ACCT 2 Ulrich Framing is well known for the quality ...

Managerial ACCT 2 Ulrich Framing is well known for the quality of its picture framing. Lucinda Ulrich, CEO, believes that the number of linear feet or framing used is the best is t

The weaknesses of an incremental budgeting system, Traditional budgeting  s...

Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  proces

Evaluate the relevant cost, Question PART A A company manufactur...

Question PART A A company manufactures a single product and the data concerning the product is as follows: - Sales price of $10 - Marginal cost of $6. - Fixed

Cost sheet, 10% of the finished castings were to be defective in manufactur...

10% of the finished castings were to be defective in manufacture and were rectified by expenditure of additional works overhead charges to the extent of 20% on the proportionate di

Estimating, how do you calculate estimating cost for the last of the year b...

how do you calculate estimating cost for the last of the year based on activity during the first half of the year

General ledger, Jp Rhodes started a bowling club called " bowl them over". ...

Jp Rhodes started a bowling club called " bowl them over". The following transactions took place 4 March 2012. 1. Bowling LTD transferred R20 000 bank account of the club as an in

Show the break-even charts, Q. Show the Break-even charts? Refers graph...

Q. Show the Break-even charts? Refers graphically profit and losses at different levels of sales volume achieved. When sales revenue is greater than total cost it m

Methods required to allocate joint costs, Methods Required To Allocate Join...

Methods Required To Allocate Joint Costs 1) Physical/Unit Measure 2) Constant gross margin rate 3) Net realizable value.

Write Your Message!

Captcha
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