Question : Suppose a country has a national debt of $5,000 billion, : 5008
Suppose a country has a national debt of $5,000 billion, a GDP of $10,000 billion, and a budget deficit of $100 billion.
1.)How much will its new national debt be? Compute its debt-GDP ratio.
2.)Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion.
3.)Compute its new level of national debt and its new debt-GDP ratio.