Suppose that a country has no public debt in year 1 but experiences a budget deficit of $40 billion in year 2, a budget surplus of $10 billion in year 3, and a budget deficit of $2 billion in year 4.
a. what is the absolute size of its public debt in year 4?

$32 billion

Explanation:

Data provided in the question:

Year              Budget deficit

 1                         0

 2                    $40 billion

 3                   -$10 billion      [negative sign depicts surplus]

 4                    $2 billion

Now,

The absolute size of its public debt in year 4

= $40 billion - $10 billion + $2 billion

= $32 billion

Hence,

The absolute size of its public debt in year 4 is $32 billion

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough