Answered: Assume a government starts with zero…

Assume a government starts with zero debt. This government then runs an annual deficit for 28 years of $3.351. At the end of those 28 years, what would be the amount of government debt?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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Question

Assume a government starts with zero debt.
This government then runs an annual deficit
for 28 years of $3.351.
At the end of those 28 years, what would be
the amount of government debt?

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