What is the sustainable deficit ratio if the country is grow, Business Economics

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What is the sustainable deficit ratio if the country is grow

Measuring Inflation - Balanced Budget

Guatemala government has an outstanding debt of $18.23 billion and its GDP is 30% higher than the debt. The nominal interest rate is 5%. The inflation rate is 2%.

a. What is the sustainable deficit ratio if the country is growing at 5%? How about when inflation goes to â?2%?

b.What about if the country grows at 2%? How about when inflation goes to â?7%?

c. Is Guatemala's debt sustainable if the government runs a balanced budget in both a and b.

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Business Economics: What is the sustainable deficit ratio if the country is grow

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Business Economics: What is the sustainable deficit ratio if the country is grow

Reference No:- TGS026504

Have a Question? (oR Write a Review)

Recent Questions Asked Business Economics

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Ask an Expert for Answer!!

Business Economics: What is the sustainable deficit ratio if the country is grow

Reference No:- TGS026504

Recent Questions Asked Business Economics

Q : External validity describes the ability to attribute

Q : Explain goals are like road map leading to final destination

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Q : Calculate additional financing needed

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