# The government of Happyland collects $100 million in taxes each year and currently has a public debt of $1.2 billion, which it finances by issuing Treasury bonds that pay 8% per year. Is this a manageable level of debt for the government of Happyland

1 answer

###### Question:

The government of Happyland collects $100 million in taxes each year and currently has a public debt of $1.2 billion, which it finances by issuing Treasury bonds that pay 8% per year. Is this a manageable level of debt for the government of Happyland

## Answers

Answer:No, the debt is not manageable because interest payments equal $96 million per year.Explanation:Annual interest payment for debt = 0.08*1.2B = $96 million Only the interest payment is about 96% of government revenue, so its not manageable.

#### Similar Solved Questions

1 answer

### Step 1:Make a _______ of each equation. Step 2: Find the point where the two lines ________. What are the blanks ? please help

Step 1:Make a _______ of each equation.
Step 2: Find the point where the two lines ________.
What are the blanks ? please help...

2 answers

### A constitution enforces the legal limits of a government’s power. True or false?

A constitution enforces the legal limits of a government’s power. True or false?...

1 answer

### Someone plz answer.determine which of the following formula(s) are needed to prove that a quadrilateral is an isosceles trapezoid. select all that apply.- midpoint formula- slope formula- distance formula- the area formula- the perimeter formula

someone plz answer.determine which of the following formula(s) are needed to prove that a quadrilateral is an isosceles trapezoid. select all that apply.- midpoint formula- slope formula- distance formula- the area formula- the perimeter formula...

1 answer

### Between what two consecutive integers does the square root of 155 lie? Between what two consecutive integers does lie? A.8 and 9 B.9 and 10 C.10 and 11 D.11 and 12

Between what two consecutive integers does the square root of 155 lie?
Between what two consecutive integers does lie?
A.8 and 9
B.9 and 10
C.10 and 11
D.11 and 12...

2 answers

### How to write about a person who has helped your community the most.

how to write about a person who has helped your community the most....

2 answers

### How did colonist react to the Townshend Acts

How did colonist react to the Townshend Acts...

1 answer

### Each of the letters below represents a different digit. if EAT = 721 what does TURKEY represent

each of the letters below represents a different digit. if EAT = 721 what does TURKEY represent...

1 answer

### This is an angle whose measure is exactly 90

This is an angle whose measure is exactly 90...

1 answer

### Why was John Reynolds considered to be an ineffective goveror?

Why was John Reynolds considered to
be an ineffective goveror?...

2 answers

### Tell whether x and y are proportional when y/x=3

Tell whether x and y are proportional when y/x=3...

1 answer

### Help ekkk please and thank u is it true or false

Help ekkk please and thank u is it true or false...

1 answer

### You drip a liquid substance onto a metal plate. You hear a hiss, and see a gas rising from the spot where the liquid touches the metal plate. What indicates a chemical reaction in this scenario? the formation of a new gas the hissing sound as the liquid touches the metal the decrease in temperature as the liquid touches the metal the liquid being in contact with a metal

You drip a liquid substance onto a metal plate. You hear a hiss, and see a gas rising from the spot where the liquid touches the metal plate.
What indicates a chemical reaction in this scenario?
the formation of a new gas
the hissing sound as the liquid touches the metal
the decrease in temperature ...

1 answer

### Visible light, radio waves, microwave radiation, infrared, ultraviolet radiation, X-rays, and gamma rays all constitute the electromagnetic spectrum. Which of the following characteristics do all of these kinds of radiation share?

Visible light, radio waves, microwave radiation, infrared, ultraviolet radiation, X-rays, and gamma rays all
constitute the electromagnetic spectrum. Which of the following characteristics do all of these kinds of
radiation share?...

1 answer

### Which of these conditions made it beneficial for aquatic plants to move onto land? bright sunlight, abundant CO2, and lack of competitors filtered sunlight, abundant O2, and higher pathogens less water, abundant nitrogen, and no pathogens

Which of these conditions made it beneficial for aquatic plants to move onto land?
bright sunlight, abundant CO2, and lack of competitors
filtered sunlight, abundant O2, and higher pathogens
less water, abundant nitrogen, and no pathogens...

1 answer

### Number 8 pls! I can’t think of a real world situation...

Number 8 pls! I can’t think of a real world situation......

2 answers

### What is 3X minus 6 and how did you get there??? A. 7 B. 9 C. 15 D. 18

what is 3X minus 6 and how did you get there??? A. 7 B. 9 C. 15 D. 18...

1 answer

### Beasley Office Supplies received an order for 7,384 tacks. If each box in the shipment contains 52 tacks, how many boxes do they need to include in the shipment?

Beasley Office Supplies received an order for 7,384 tacks. If each box in the shipment contains 52 tacks, how many boxes do they need to include in the shipment?...