The national debt The following table contains approximate figures for gross dom
ID: 1205927 • Letter: T
Question
The national debt The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2007 and June 2010. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. National debt held by the public is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2010, the national debt held by the public as a percentage of total national debt was In June 2010, the percentage of the U.S. national debt held by foreigners was The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of Americans. Between 2007 and 2010, the fraction of the national debt held by foreigners. The absolute level of the debt does not necessarily gives idea of a nation's debt burden. Instead, economists often look at relative measures of the national debt. One possible relative measures of the national debt is the federal debt held by the public (outside the federal government and the Federal Reserve) as a percentage of GDP. In 2010, national debt held by the public was of GDP. Between 2007 and 2010, national debt held by the public as a percentage of GDP.Explanation / Answer
1. 48.7%
Publicly held debt = National debt that is held outside the federal government and the Federal Reserve System in June 2005 / Total National Debt = (Foreign Ownership + U.S Ownership)/ Total National Debt
= (4 + 4.6)/13.2 = 8.6/13.2 = 0.651 = 65.1%
2. 24.4%
In June 2007, the percentage of the U.S. national debt held by foreigners = 4/13.2 = 0.303 = 30.3%
3. increased
In June 2007, the percentage of the U.S. national debt held by foreigners = 2.2/8.9 = 0.2472 = 24.72%
In June 2010, the percentage of the U.S. national debt held by foreigners = 4/13.2 = 0.303 = 30.3%
Between 2007 and 2010, the fraction of the national debt held by foreigners increased by 5.58%.
4. In 2010, publicly held debt was 59.31% of GDP
Publicly held debt as a percentage of GDP in 2010 = (4 + 4.6)/14.5 = 0.5931 = 59.31%
5. Between 2007 and 2010, publicly held debt as a percentage of GDP increased from 32.1% to 59.31%.
Publicly held debt as a percentage of GDP in 2007 = (2.2 + 2)/13.7 = 0.321 = 32.1%
Publicly held debt as a percentage of GDP in 2010 = (4 + 4.6)/14.5 = 0.5931 = 59.31%