At the start of the financial year, a nation's accumulated national debt stands at £1600 billion\text{£}1600\text{ billion}£1600 billion. During the year, the government implements an expansionary fiscal policy, planning to increase its public expenditure by £240 billion\text{£}240\text{ billion}£240 billion, whilst borrowing an additional £136 billion\text{£}136\text{ billion}£136 billion to fund its budget deficit.
If the government meets these spending and borrowing targets, by what percentage will the national debt have increased by the end of the financial year?
6.5%6.5\%6.5%
8.5%8.5\%8.5%
15.0%15.0\%15.0%
23.5%23.5\%23.5%
245 exam-style questions on AQA A Level Economics 2.5 Fiscal policy and supply-side policies, covering 2.5.1 Fiscal policy and 2.5.2 Supply-side policies. Each one has a worked solution and a mark scheme showing where the marks go.