Essay
Suppose that for the nation of Calliope,the debt-to-GDP ratio is 325%,the average annual growth rate is 1.1%,the average inflation rate is 0.5%,and the average nominal interest rate is 2.2%.Based on this information,determine if fiscal policy is sustainable in Calliope,and if not,what the primary budget deficit would have to be to make fiscal policy sustainable.
Correct Answer:
Verified
Correct Answer:
Verified
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Q4: Suppose the government cuts taxes by $300
Q5: Assume that seigniorage and the government's primary
Q6: Holding everything else constant,if the nominal interest
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Q11: What is necessary for fiscal policy to