Suppose That the Government Has Current Financial Assets of $500

question 15

Essay

Suppose that the government has current financial assets of $500 billion, that government receipts next year will be $3 trillion, and that government outlays next year will be $3.5 trillion. Given an interest rate of 6 percent, what is the one-year fiscal imbalance?

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Definitions:

Form 10K

A comprehensive summary report of a company's performance that must be submitted annually to the Securities and Exchange Commission.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures that companies must follow when they compile their financial statements.

Segment Assets

Assets that are allocated to a company's operational segments or divisions for the purpose of financial reporting.