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    Macroeconomics Understanding the Global Economy
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    Exam 18: Sovereign Debt and Default
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    If Annual GDP Growth Is
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If Annual GDP Growth Is

Question 11

Question 11

Multiple Choice

If annual GDP growth is .10,the interest rate is .05,the annual primary deficit is .04,and there is no price inflation,then the sustainable debt/GDP ratio is


A) .80
B) .90
C) 1.11
D) 2.80
E) 10

Correct Answer:

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