Complete the table below for the small country of Microland. Assume all dollar values are nominal, and Microland started Year 1 with no federal debt.
a. Over which years does Microland€™s debt ratio rise?
b. Assuming that Microland always pays the same interest rate on its debt, over which years does the burden of Microland€™s debt rise?
c. During one of the years, Microland€™s nominal debt rises, yet the burden of its debt falls. Which year? Explain briefly how the debt can rise and yet its burden can fall?

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Year 2 3 $600 6. GDP Outlays Tax revenue $800 $1,000 $ 130 $ 130 $400 $105 $100 $500 $700 $135 $133 $900 $130 $138 $126 $130 $125 $133 $134 $120 Deficit/Surplus National debt (end of year) Debt ratio (end of year)