In 2012 the public debt was $16.4 trillion. Put this number in perspective by relating the debt to GDP, to other countries’ debt, to the amount of interest payments on the debt, and to ownership of the debt.
What will be an ideal response?
In 2012 debt was a slightly larger proportion of GDP than it was in 2000; it was about 45 percent of GDP in 1995 and 70 percent of GDP in 2012. In 2012 public debt was a greater percentage of GDP in Japan, Greece, Italy, Belgium, France, the United Kingdom, Canada, Spain, and Germany than in the United States. Interest charges as a percentage of GDP are about 2.3 percent of GDP. The share held by foreigners was about 33 percent of the total. About 40 percent was held by the Federal government and the Federal Reserve.
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Use the information in the following table to answer the next question.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200The amount of investment that will be forthcoming in this economy at equilibrium is ________.
A. $500 B. $600 C. $700 D. $300
Assume that excess reserves are $10 million, the required reserve ratio is 10 percent, and total reserves are $145 million. Demand deposits are
A) $135 million. B) $1.35 billion. C) $1.35 million. D) $1.45 billion.
Suppose the nominal exchange rate — Canadian dollar per Brazilian real — is constant
If the price level in Brazil rises by four percent, while the price level in Canada rises by eight percent, then the real exchange rate — Brazilian goods for Canadian goods — has ________ by ________ percent. A) declined; one-half B) risen; one-half C) risen; two D) declined; four
The marginal cost curve of a firm measures
A) external costs. B) pollution costs. C) private costs. D) social costs.