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August 1, 2014

August 1, 2014

Posted by **june** on Thursday, September 18, 2008 at 3:06pm.

What is the new level of gross national debt?

If 100 percent of the deficit is financed by the sales of securities to federal agencies, what happens to the amount of debt held by the public?

What happens to the level of gross debt?

If GDP increases by 5 percent in the same that the deficit is run, What happens to gross debt as a percentage of GDP? What happens to the level of debt held by the public as a percentage of GDP?

- college-economics -
**economyst**, Friday, September 19, 2008 at 9:09am1) 3.3 Trillion, obviously

2) Securities are debt held by someone else, e.g., the public. So, debt held by the public rises by $300B. 3) No change to the overall level of gross debt.

4) Debt as a percent of GDP is simply debt divided by GDP. So, if the denominator, goes up, the whole term goes down. 5) same logic.

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