Assume that a countryrsquos real growth is 2 percent per


Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year.

a. Can the country continue to afford such deficits indefinitely?

b. What problems might it face in the future?

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Microeconomics: Assume that a countryrsquos real growth is 2 percent per
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