Suppose a government has an initial debt of 5 trillion and


Suppose a government has an initial debt of $5 trillion and the nominal rate of interest is 5%.

(A) if government keep primary budget in balance, what is the growth rate of its debt?

(b) if government keeps its total budget in balance, what s the growth rate of its debt?

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Business Economics: Suppose a government has an initial debt of 5 trillion and
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