gov of Zimbabwe implements reforms which cause the growth rate of the economy to increase, and are financed through an increase in government spending that only occurs once. What is the likely impact on the growth of the debt to GDP ratio? (there can be more than one answer, select all that apply):  To rise initially, followed by a fall To rise initially followed by a plateau To fall To fall initially and then rise

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The gov of Zimbabwe implements reforms which cause the growth rate of the economy to increase, and are financed through an increase in government spending that only occurs once. What is the likely impact on the growth of the debt to GDP ratio?

(there can be more than one answer, select all that apply): 

  1. To rise initially, followed by a fall
  2. To rise initially followed by a plateau
  3. To fall
  4. To fall initially and then rise
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