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?

No, the debt is not manageable because the government must repay the entire $1.2 billion debt at the end of the year.

No, the debt is not manageable because interest payments equal $96 million per year.

Yes, the debt is manageable because the public debt is only 12 times the size of tax revenues.

Yes, the debt is manageable because an interest rate of 8% is relatively low.

Answers

Answer 1
No, the debt is not manageable because interest payments equals $96 million per year.

Annual interest payments on the debt are:
0.08 x $1,200,000,000 = $96,000,000

While it is possible to cover interest on the debt with $100 million in tax revenues, that would leave just 4% ($4,000,000/$100,000,000 x 100) of tax revenues to pay the principal on maturing loans and all other government expenditures (assuming no additional debt is incurred). This is not a manageable level of debt.

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The boundary between the Pacific Plate and the Australian Plate is a transform boundary. What event is likely to occur at this boundary?

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Question 1
Which was NOT a reason for the start of World War II?
a. failure of appeasement
b. failure of the League of Nations
C. Germany invaded Poland
d. strong economies throughout the world

PLEASE REPLY!!!!

Answers

This is NOT a reason for the start of World War II, which erupted in 1939 and lasted till 1945: d. strong economies throughout the world.

What were the causes of World War II?

The numerous causes of World War II included:

Worldwide economic depressionFailure of appeasementRise of FascismNazi ideologyIncreased militarism and nationalism in Germany and JapanFailure of the League of Nations.

One cannot agree that strong economies throughout the world helped to fuel the Second World War.

Thus, strong economies cannot be blamed for the start of World War II.

Learn more about the Second World War at https://brainly.com/question/1307652

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