If the government owes $15.0 trillion and then borrows $900 billion more this year, this leads to
a. a debt of $900 billion and a deficit of $15.9 trillion.
b. a debt of $15.9 trillion and a deficit of $900 billion.
c. a debt of $14.1 trillion and a deficit of $900 billion.
d. a debt of $15.0 trillion and a deficit of $14.1 trillion.
e. a debt of $15.9 trillion and a deficit of zero.
B
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Consider two countries: A and B. In country A, the annual growth rate of GDP per capita is 2%, while in country B the annual growth rate of GDP per capita is 6%. At present, country B's GDP per capita is higher than country A's GDP per capita
Which of the following statements will then be true? A) The gap between country A's GDP per capita and country B's GDP per capita will decrease for the first few years and then will increase later. B) The gap between country A's GDP per capita and country B's per capita will decrease over time. C) The gap between country A's GDP per capita and country B's per capita will widen over time. D) The gap between country A's GDP per capita and country B's per capita will remain the same.
In the above figure, if a subsidy is granted to producers that generates an efficient allocation of resources, then producers will receive a total amount (price plus subsidy) equal to
A) $20 per unit. B) $15 per unit. C) $10 per unit. D) $5 per unit.