Presume that a country has no public debt in year 1 however experiences a budget deficit of $20 billion in year 2, a budget deficit of $20 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.
A. What is the absolute size of its public debt in year 5? $ Billion?
B. If it’s real GDP in year 5 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 5? In Percent? (Round two decimal places)