Consider the following economy below in 2010 and 2020. Assume that the interest rate on the debt is 20%. What is the minimum tax rate needed to hold the debt in 2010? А 4.50% B 5.00% С 6.25% D 7.00% Year 2010 2020 Nominal Debt 1000 2500 Nominal GDP 4000 8000 Price Level/GDP Deflator 100 150 Consider the following economy below in 2010 and 2020. Assume that the interest rate on the debt is 20%. What is the interest payment on the debt in 2020? ? A 200 B 300 с 400 D 500 2010 2020 Year Nominal Debt 1000 2500 Nominal GDP 4000 8000 Price Level/GDP Deflator 100 150
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