What will be the government deficit. if the government, Ask an Expert

Economics

Suppose a government has no debt and a balanced budget. Suddenly it decides to spend 10 billion while raising only 8 billion worth of taxes.

1.) What will be the government deficit

2.) If the government finances the deficit by issuing bonds, what amout of bonds will it issue?

3.) At a 5 percent rate of interest, how much interest will the government pay each year?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9443511

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