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 2020? A 4.50% B 5.00% C 6.25% D 7.00% Year 2010 2020 Nominal Debt 1000 2500 Nominal GDP 4000 8000 Price Level/GDP Deflator 100 150 What is the Real GDP in 2020, according to the table below? Has the Real GDP increased or decreased compared to 2010? A Real GDP = $4000 in 2020 and is less than Real GDP in 2010 B B Real GDP = $4000 in 2020 and is greater than Real GDP in 2010 с Real GDP = $5333 in 2020 and is less than Real GDP in 2010 D Real GDP = $5333 in 2020 and is greater than Real GDP in 2010 2010 1000 Year Nominal Debt Nominal GDP Price Level/GDP Deflator 2020 2500 8000 4000 100 150
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