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svetoff [14.1K]
3 years ago
10

Last year a country’s real GDP grew by 4%, it’s inflation rate was 2.5%, and it’s government budget deficit was about $250 billi

on. It’s debt to GDP ratio was unchanged. About what was it’s debt at the start of last year?
a. 16.7 trillion
b. 10.0 trillion
c. 6.25 trillion
d. 3.85 trillion
Business
1 answer:
Arturiano [62]3 years ago
5 0

Answer:

d. 3.85 trillion

Explanation:

Step 1: Given data

GDP = GDP grew by = 4% = 0.04

R = inflation rate was = 2.5% = 0.025

D = government budget deficit was = $250 billion

Step 2: Formula

X = debt at the start of last year

X = D / (GDP + R)

Step 3: Computation

X = 250 billion / (0.04 + 0.025)

X = 250,000,000,000 / 0.065

X = 3,846,153,846,153.85

Step 4: Convert to trillion

X = 3,846,153,846,153.85 / 1,000,000,000,000

X = 3.85 trillion

The correct option is d. 3.85 trillion

Hope this helps!

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Explanation:

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1          5000 0.892857143  4,464.29  

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   Total of present values               12,960.09

The discounting factor is calculated using the formula :

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Peter owns 100 shares of a company. He receives a fixed rate of dividend from these shares. Which type of share has Peter purcha
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Identify the correct order of the four steps used to prepare a production cost summary (report). 1)Summarize the cost flow of ph
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Answer:

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Answer:

August 2    Notes Receivable                   8000 Dr

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                          Interest Revenue                          220 Cr

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