Business, 22.04.2020 01:45, MrTeriffic

At the end of 2018, the federal government debt of the U. S. stood at 104% of GDP. Imagine that, unlike in previous years, from 2019 on the federal government runs a balanced primary budget, i. e. total primary federal government expenses are equal to total federal government revenues. Also suppose that in all years starting from 2019, the nominal GDP will grow at 3% and the interest rate at which the U. S. government can borrow will be 2%. What will be the U. S. federal debt as a fraction of GDP in year 2050

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At the end of 2018, the federal government debt of the U. S. stood at 104% of GDP. Imagine that, unl...