A country is growing at 3% and has a debt/GDP ratio of 50%. Assuming no money financing, what is the primary budget deficit/surplus that keeps the debt/income ratio constant when (i) The real interest rate is 2%?(ii) The real interest rate is 5%? Your answer
A country is growing at 3% and has a debt/GDP ratio of 50%. Assuming no money financing, what is the primary budget deficit/surplus that keeps the debt/income ratio constant when (i) The real interest rate is 2%?(ii) The real interest rate is 5%? Your answer
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