Net foreign debt is 25 percent of U. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the…

Net foreign debt is 25 percent of U.S. GDP and that foreign assets and liabilities alike pay an interest rate of 5 percent per year. What would be the drain on U.S. GDP (as a percentage) from paying interest on the net foreign debt? What if the net foreign debt were 100 percent of GDP? Size of its foreign debt?

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