Question

onduct an Internet search on the "national debt to the penny." How much is the current national debt? Once you find out the size of the debt, determine if the federal government is helped or hurt by unanticipated inflation if the interest rate on the debt and its payments are fixed. Explain.

Answer 1

At the end of FY 2018 the gross US federal government debt is estimated to be$21.48 trillion

Step-by-step explanation:

The government is helped by inflation with regard to the debt since it will get increased tax revenues as a result of inflation, however the amount of interest and principal on the bonds will remain the same. Also, inflation will cause people to demand higher interest on bonds and the government will have to pay more for borrowing money.