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August 1, 2014

Homework Help: college-economics

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

The gross national debt initially is equal to $3 trillion and the federal government then runs a deficit of $300 billion: total 5 questions. Confused, believe gross debt = all fed govt debt

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?

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