The primary budget surplus equals 2.1 percent of outstanding…
The primary budget surplus equals 2.1 percent of outstanding debt. The interest rate is 4.4 percent. The growth rate of nominal GDP is 1.4 percent. You should assume that these percentages are all constant over time. The initial debt-GDP ratio is 10 percent. Calculate the growth rate of . Round your answer to the nearest tenth of a percent. Hint: Use the fact that
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