Business, 19.03.2020 22:51 alarconanais07

Assume a country’s nominal GDP is $650 billion, government expenditures less debt service are $165 billion, and revenue is $160 billion. The nominal debt is $400 billion. Inflation is 7 percent and interest rates are 5 percent. Instructions: Enter your responses rounded to decimal place. To indicate a deficit, be sure to use a negative (-) sign before the value. a. Calculate debt service payments. $ billion b. Calculate the nominal deficit or surplus. Add a negative sign before the value to indicate a deficit. $ billion c. Calculate the real deficit or surplus, placing a negative sign in front of the value if it is a deficit. $ billion

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Assume a country’s nominal GDP is $650 billion, government expenditures less debt service are $165 b...

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