If the U.S.-debt-to-GDP ratio were 100% and if the interest rate on the debt were 5% (not
Question:
If the U.S.-debt-to-GDP ratio were 100% and if the interest rate on the debt were 5% (not far from the truth at present), then what fraction of U.S. GDP would go toward paying interest on the debt?
Step by Step Answer:
5 of GDP ...View the full answer
Related Video
Interest, debt, finance, and capital markets are all important concepts in the world of economics and business. Interest is the cost of borrowing money, and it is typically expressed as a percentage of the amount borrowed. Debt is the money that is borrowed, and it has to be repaid with interest. Finance is the study of how individuals, companies, and organizations manage their money and investments. Capital markets are the places where companies and governments can raise money by selling stocks and bonds to investors. These markets play an important role in the overall economy by helping to fund investment and growth.
Students also viewed these Business questions
-
If 5 = then S is a ring under matrix addition and multiplication. Prove that R is isomorphic to S. 0 0 aaER
-
What is your debt payments-to-income ratio if your debt payments total $684 and your net income is $2,000 per month?
-
If interest rates on bonds go to zero, what does the Baumol-Tobin analysis suggest Grant Smiths average holdings of money balances should be?
-
Adam Kleen Enterprise (AKE) was initially set up as a convenient shop selling laundry related items by Adam Bollan. Despite having good results in the national-level examination and was even offered...
-
Using the thin lens equation and the magnification factor, show that for a spherical diverging lens, the image of a real object is always virtual, upright, and reduced.
-
Using the data in Table 6.1, calculate the 30-day, 90-day, and 180-day forward premiums for the British pound. Table 6.1 Foreign Exchange Rates, Friday, November 30, 2018 Source: Bloomberg. Currency...
-
Compare and contrast assemblers, compilers, interpreters, and virtual machines.
-
Three tests have been used by various courts in common-law decisions to determine which third-party users can successfully bring a suit against the auditor for negligence. Identify each of these...
-
please name one digital/social media invention/trend that you are grateful for and could not live without. Give 3 reasons why and support your opinion with data, statistics or a newsletter article....
-
Shake Shack Incorporated, which began as a hot dog stand in 2001, now has more than 200 locations worldwide. The following is adapted from Shake Shack's financial statements for the quarter ended...
-
Which of the following government policies are automatic stabilizers for the economy? Unemployment insurance Temporary tax cuts that Congress passes when bad economic news hits Temporary spending...
-
Imagine you live in the land of Ricardia, where every citizen is a Ricardian and thus Ricardian equivalence is 100% true. Government spending never changes in Ricardia: Its a fixed amount every year....
-
Comparative financial statement data of Shabby Chic Furniture Company follow: Other information follows: 1. Market price of common stock was $31.00 at December 31, 2016, and $48.50 at December 31,...
-
To what extent do you use price to judge the potential quality of an item that you are considering purchasing? Critically reflect on the pros and cons of using price as a decision cue in this way.
-
How does the Securities and Exchange Commission prevent unfair practices?
-
What externalities arise from driving cars around Europes medieval cities, like Prague, and how do Europeans deal with this?
-
a. Explain how a tea workers union would attempt to counteract the plantations wage offer in a bilateral monopoly. b. Explain how the wage rate would be determined if the market were a bilateral...
-
Classify each of the following items as a final good or service or an intermediate good or service and identify each item as a component of consumption expenditure, investment, or government...
-
Define EDI, and list its major benefits and limitations?
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
Which of the following are free riders, which are forced riders, and which are just people paying for public goods? a. In Britain, Alistair pays a tax to support the British Broadcasting Company. He...
-
a. Is educationa college course, for instanceexcludable? b. Is education a rival good? That is, if your class has more students, do you get a worse education on average? Do students (and parents)...
-
Emeril says, In my economics class, I learned that the only way to fund public goods was to have the government tax citizens to pay for those goods. Is that what you learned? Rachel responds,...
-
How does Volatility affect Market Behavior? Do you think that understanding volatility would help you in making decisions when investing? How? And explain the Why?
-
Todd wants to start his own business and is debating between organizing the business as a sole proprietorship or a corporation. Explain the pros and cons of both forms of business organization.
-
If a farmer is worried the price of soybeans will decrease before harvest, what are two possible hedging strategies they might employ? Be explicit about which components of cash price risk (futures...
Study smarter with the SolutionInn App