Macroeconomics please help
if the interest rate on US Treasury Debt is 4.5 percent, how much interest does the US Private Sector collect each year from the US Treasury? (Assume a total debt of $21 trillion) answer needs to be in billions please!
Homework Answers
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(a) What percentage of U.S. debt do foreigners hold? (See Figure 12.4.)(b) If the interest rate...
(a) What percentage of U.S. debt do foreigners hold? (See Figure 12.4.)(b) If the interest rate on U.S. Treasury debt is 4 percent, how much interest do foreigners collect each year from the U.S. Treasury? (Assume a total debt of $18 trillion.)FIGURE 12.4: Debt OwnershipThe bonds that create the national debt represent wealth that’s owned by bondholders. Almost half of that wealth is held by the U.S. government itself. The private sector in the United States holds only 21 percent...
Macroeconomics please help
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $6 trillion while only raising $4.5trillion worth of taxes.a. What will be the governments deficit $_____billionb. If the government finances the deficit by issuing bonds, what amount of bonds will it issue? $____billionc.at a 4 percent rate of interest, how much will the government pay each year? $_____billiond. Add the interest payment to the governments $6trillion expenditures for the next year and assume that tax...
10.6 HOW THE FEDERAL RESERVE CONTROLS THE INTEREST RATE LEARNING OBJECTIVE: Understand how the Fed can change the interest rate. 6.1 In the Republic of Doppelganger, the currency is the ditto. D...
10.6 HOW THE FEDERAL RESERVE CONTROLS THE INTEREST RATE LEARNING OBJECTIVE: Understand how the Fed can change the interest rate. 6.1 In the Republic of Doppelganger, the currency is the ditto. During 2015, the Treasury of Doppelganger sold bonds to finance the Doppelganger budget deficit. In all, the Treasury sold 80,000 ten-year bonds with a face value of 1,000 dittos each. The total deficit was 80 mil- lion dittos. The Doppelganger Central Bank reserve requirement was 16 percent and in...
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $4...
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend $4 trillion while raising only $3 trillion worth of taxes.(a) What will be the government’s deficit? _________(b) If the government finances the deficit by issuing bonds, what amount of bonds will it issue? _________(c) At a 4 percent rate of interest, how much interest will the government pay each year? _________(d) Add the interest payment to the government’s $4 trillion expenditures for the next year,...
Economics: Data are available for a number of recent years for the U.S. economy. The objective...
Economics: Data are available for a number of recent years for the U.S. economy. The objective is to understand the relationship between three economic indicators and the U.S. GDP: the interest rate on 10 year U.S. Treasury notes, the price of crude oil, and the amount of consumer debt. Therefore, a model was built to predict GDP using interest rate, price of crude oil, and consumer debt. Use the information listed below. y, Gross Domestic Product (GDP) (in trillions of...
Indicate the correct answer and why, show work. Thank you The table shows the demand for...
Indicate the correct answer and why, show work. Thank you
The table shows the demand for loanable funds schedule and the supply of loanable funds schedule when the government budget is balanced. If the government budget deficit is $1.0 trillion and the Ricardo-Barro effect occurs, what are the real interest rate and the Real Loanable funds Loanable funds interest rate demanded supplied quantity of investment? If the Ricardo-Barro effect occurs, and if the government budget deficit is $1.0 trillion, the...
1)The TARP program allocated $500 million to individuals who defaulted on their mortgages. provided $25 billion...
1)The TARP program allocated $500 million to individuals who defaulted on their mortgages. provided $25 billion of debt relief to citizens who owed federal taxes. provided low-interest-rate loans for students attending college. provided low-interest-rate loans for new homeowners. allocated $700 billion to keep banks from failing. Question 12 The interest rate of a bond is computed as a(n) difference. sum. absolute value. multiplication. growth rate Question 13 If the interest rate of a one-year bond is 15 percent and its...
Please help me answer question 3. You need to choose between making a public offering and...
Please help me answer question 3.
You need to choose between making a public offering and arranging a private placement. In each case the issue involves $10 million face value of 10-year debt. You have the following data for each: • A public issue: The interest rate on the debt would be 8.5%, and the debt would be issued at face value. The underwriting spread would be 1.5%, and other expenses would be $80,000. A private placement: The interest rate...
Based on the below excerpt from an Economics textbook, please answer the question below the text:...
Based on the below excerpt from an Economics textbook, please answer the question below the text: Over the years, the federal government budget experiences imbalances. A budget deficit occurs when federal expenditures (including both spending on final goods and transfer payments such as social security benefits, welfare, unemployment benefits etc.) exceed tax revenues collected by the federal government for that fiscal (budget) year. A surplus occurs when the government collects more in taxes than it spends. For example, for four...
National Debt: The size of the total debt by the United States Federal government continues to...
National Debt: The size of the total debt by the United States Federal government continues to grow in fact according to the department of the treasury the debt per person living in the United States is approximately $53,000. The following data represents the US debt for the years 2001 through 2013 since the debt D depends on the year why and each and put corresponding to be exactly one output the debt is a function of the year so D(Y)...
(a) What percentage of U.S. debt do foreigners hold? (See Figure 12.4.)(b) If the interest rate on U.S. Treasury debt is 4 percent, how much interest do foreigners collect each year from the U.S. Treasury? (Assume a total debt of $18 trillion.)FIGURE 12.4: Debt OwnershipThe bonds that create the national debt represent wealth that’s owned by bondholders. Almost half of that wealth is held by the U.S. government itself. The private sector in the United States holds only 21 percent...
10.6 HOW THE FEDERAL RESERVE CONTROLS THE INTEREST RATE LEARNING OBJECTIVE: Understand how the Fed can change the interest rate. 6.1 In the Republic of Doppelganger, the currency is the ditto. During 2015, the Treasury of Doppelganger sold bonds to finance the Doppelganger budget deficit. In all, the Treasury sold 80,000 ten-year bonds with a face value of 1,000 dittos each. The total deficit was 80 mil- lion dittos. The Doppelganger Central Bank reserve requirement was 16 percent and in...
Economics: Data are available for a number of recent years for the U.S. economy. The objective is to understand the relationship between three economic indicators and the U.S. GDP: the interest rate on 10 year U.S. Treasury notes, the price of crude oil, and the amount of consumer debt. Therefore, a model was built to predict GDP using interest rate, price of crude oil, and consumer debt. Use the information listed below. y, Gross Domestic Product (GDP) (in trillions of...
Indicate the correct answer and why, show work. Thank you
The table shows the demand for loanable funds schedule and the supply of loanable funds schedule when the government budget is balanced. If the government budget deficit is $1.0 trillion and the Ricardo-Barro effect occurs, what are the real interest rate and the Real Loanable funds Loanable funds interest rate demanded supplied quantity of investment? If the Ricardo-Barro effect occurs, and if the government budget deficit is $1.0 trillion, the...
Please help me answer question 3.
You need to choose between making a public offering and arranging a private placement. In each case the issue involves $10 million face value of 10-year debt. You have the following data for each: • A public issue: The interest rate on the debt would be 8.5%, and the debt would be issued at face value. The underwriting spread would be 1.5%, and other expenses would be $80,000. A private placement: The interest rate...
Based on the below excerpt from an Economics textbook, please answer the question below the text: Over the years, the federal government budget experiences imbalances. A budget deficit occurs when federal expenditures (including both spending on final goods and transfer payments such as social security benefits, welfare, unemployment benefits etc.) exceed tax revenues collected by the federal government for that fiscal (budget) year. A surplus occurs when the government collects more in taxes than it spends. For example, for four...
National Debt: The size of the total debt by the United States Federal government continues to grow in fact according to the department of the treasury the debt per person living in the United States is approximately $53,000. The following data represents the US debt for the years 2001 through 2013 since the debt D depends on the year why and each and put corresponding to be exactly one output the debt is a function of the year so D(Y)...
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