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