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Suppose that a country has a debt-to-gdp ratio of 64 the

Suppose that a country has a debt-to-GDP ratio of 64%. The growth rate of real GDP is 3%. Assume that seignior age is zero and the real interest rate is 2%.What primary deficit as a percentage of GDP would be required to make fiscal policy sustainable?

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Suppose that a country has a debt-to-gdp ratio of 64 the

Reference No:- TGS0662496

Have a Question? (oR Write a Review)

Recent Questions Asked Macroeconomics

Q : Unemployment in the labor market is increased by forces

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Suppose that a country has a debt-to-gdp ratio of 64 the

Reference No:- TGS0662496

Recent Questions Asked Macroeconomics

Q : Unemployment in the labor market is increased by forces

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