Question

The tables show the spending and revenue for Littleland in 2010. Use the tables and other information to answer the questions

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Answer #1

a) Borrowings = Expenditure - Revenue

=(320+890+270+120+170+240) - (800+270+300+340)

=2010-1710

=300 million

b) Deficit to GDP ratio

Deficit = 300 million

GDP=7.3 billion

Ratio = 0.3/7.3*100

=4.10% or 4%

c) Debt to GDP ratio = debt/gdp

Total debt = 3.5 billion+.3 million = 3.8 billion

=3.8/7.3*100

=52.05% or 52%

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