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the years, the situation changed Completely. Nowadays, Greece allages to DOflow the international capital markets without support. In light of the latest (and last) Eurozone

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the years, the situation changed Completely. Nowadays, Greece allages to DOflow the international capital markets without support. In light of the latest (and last) Eurozone bailout package, the EU Commission released new estimates about Greek government finances. Greece's primary surplus (!!) is likely to rise to 3.9% of GDP this year. Debt over GDP is currently (2017) 176.1%. The Greek government can borrow (10 year bonds) at 3.323%, inflation is projected at 1.5% and GDP growth is estimates at 2.1%. b) On the basis of the given data, calculate the debt-to-GDP ratio for the upcoming 20 years. Is the during the debt-to-GDP ratio stable? If not, what can/should the government do to keep it constant at the current level? Use a phase-diagram to explain the dynamics and the required adjustment

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