Problem
Suppose a country has a national debt of $5,000 billion, a GDP of $10,000 billion, and a budget deficit of $100 billion.
1. How much will its new national debt be? Compute its debt-GDP ratio.
2. Suppose its GDP grows by 1% in the next year and the budget deficit is again $100 billion.
3. Compute its new level of national debt and its new debt-GDP ratio.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.