Unlike households, governments are often able to sustain large debts. for example, in 2015, the u. s. government's total debt reached $18.1 trillion, approximately equal to 100.4% of gdp. at the time, according to the us treasury, the average interest rate paid by the government on its debt was 1.2%. however, running budget deficits becomes hand when very large debts are outstanding.
a. calculate the dollar cost of the annual interest on the government's total debt, assuming the interest rate and debt figures previously cited.
b. if the government operates on a balanced budget before interest payments are taken into account, at what rate must gdp grow for the debt-gdp ratio to remain unchanged?

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)