As stated in the chapter, gross federal debt at the end of the 2010 fiscal year was

Question:

As stated in the chapter, gross federal debt at the end of the 2010 fiscal year was $13,562 billion. Currently, interest rates are very low, but historically, interest rates on Treasury bonds have been considerably higher. Assume, for simplicity, that the government pays the same interest rate on all outstanding debt. What is the approximate annual interest payment if the interest rate is:
a. 0.5%?
b. 3%?
c. 5%?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780132109994

1st Edition

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

Question Posted: