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Consider an economy characterized by the following facts: The official deficit is 4% of GDP. The debt-to-GDP ratio is 100%. The nominal interest rate is
Consider an economy characterized by the following facts:
- The official deficit is 4% of GDP.
- The debt-to-GDP ratio is 100%.
- The nominal interest rate is 10%.
- The inflation rate is 7%
(Short answer)
- What is the primary deficit/surplus ratio to GDP?
- What is the inflation-adjusted deficit/surplus ratio to GDP
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