This topic contains a solution. Click here to go to the answer

Author Question: Explain the reason why the debt-to-GDP ratio in the United States is expected to explode between now ... (Read 122 times)

mydiamond

  • Hero Member
  • *****
  • Posts: 804
Explain the reason why the debt-to-GDP ratio in the United States is expected to explode between now and the year 2042.
 
  What will be an ideal response?

Question 2

The nominal return of money is
 
  A) 0.
  B) r.
  C) R.
  D) i.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jordangronback

  • Sr. Member
  • ****
  • Posts: 339
Answer to Question 1

The debt-to-GDP ratio is expected to explode because government expenditures on transfer programs such as Social Security, Medicare, and Medicaid outpace revenues and are forecast to become more expensive. Expenditures on these programs will increase because the population is aging and health care costs are expected to rise rapidly. Expenditures on Medicaid, Medicare, and Social Security are projected to rise from 10.4 of GDP in 2012 to 18.3 of GDP in 2042. Also, the government has to pay interest on the new debt it issues, so net interest payments are projected to rise dramatically. Interest payments are projected to increase from 1.4 of GDP in 2011 to 11.8 of GDP in 2042.

Answer to Question 2

A




mydiamond

  • Member
  • Posts: 804
Reply 2 on: Jun 30, 2018
Excellent


epscape

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

For a complete list of videos, visit our video library