1. Suppose the primary deficit of Zambia's debt rate was 2% of GDP, the nominal growth rate was 6% and the nominal yield was 5%. What would be the long-run debt to GDP ratio of Zambia's debt?
2. Level of public debt as one of the triggers for further analysis, however, a Debt Sustainability Analysis is a multifaceted exercise, but the trend level of the debt-to-GDP ratio is a key indicator framework. Based on the recent empirical evidence, it suggest that a reference point for public debt of 60% of GDP be used flexibly to trigger deeper analysis for market-access countries (MACs). Discuss briefly the presence of vulnerabilities that would call for in - depth analysis for countries where debt is below the reference point?
3. What is involved in developing the principles of borrowing policies?
4. Discuss the two simplicity of principles of borrowing policies