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Figure 185 Below Shows German and Italian GDP (Solid) and Government

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Figure 18.5 below shows German and Italian GDP (solid) and government debt (dashed) for the period 1996-2014. Which country is likely to have more sustainable debt? Explain. Which country is more likely to default on its debt and have higher government bond interest rates?Figure 18.5: German and Italian GDP and Government Debt: 1996-2014 Figure 18.5 below shows German and Italian GDP (solid) and government debt (dashed) for the period 1996-2014. Which country is likely to have more sustainable debt? Explain. Which country is more likely to default on its debt and have higher government bond interest rates?Figure 18.5: German and Italian GDP and Government Debt: 1996-2014

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German debt is not only lower than Germa...

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