240 likes | 367 Views
Economics 2302 Assignment 5. Tony Lima. Chapter 9, Question 3. Answer to Ch. 9 Q. 3. Answer to Ch. 9 Q. 3. Answer to Ch. 9 Q. 3. Answer to Ch. 9 Q. 3. In both cases S + T = I p + G = 250. Chapter 9 Q. 7. Chapter 9 Q. 7 answer. Chapter 9 Q. 8. Chapter 9 Q. 8 answer.
E N D
Economics 2302Assignment 5 Tony Lima
Answer to Ch. 9 Q. 3 In both cases S + T = Ip + G = 250
Chapter 9 Q. 15 answer • The idea here is that the government adds 1 billion lavs to the debt each year. Remember, taxes are only raised to cover the additional interest. Since there is 1 billion in new debt, the interest payments rise by 4% x 1 million = 40,000 lavs per year (0.04 million). • After 1 year G = 9.04, Debt = 1 million • After 5 years G = 9 +(5 x 0.04) = 9.20. The debt is 5 million. • After 10 years G = 9.40 million, Debt = 10 million.