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5. Explain in words the intuition behind the debt dynamics equation: Ab = d + (r Mb, 5. Discuss how each of the following can

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5. Explain in words the intuition behind the debt dynamics equation: Ab = d + (r Mb, 5. Discuss how each of the following can help to reduce the debt burden on govern- ments. What are the problems and potential negative consequences associated with each method? (a) reducing the primary deficit, d (b) increasing the growth rate, y? (c) reducing the interest rate, r (d) reducing the existing stock of debt, b

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