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Consider the following data about government debt and deficit in a givenyear:
Consider the following data about government debt and deficit in a givenyear:
minus−real interest rate on government bonds= 3%
minus−growth rate of real GDP= 3%
minus−current debtminus−tominus−GDP ratio= 25%
minus−primary budget surplus as a percentage of GDP= 2%
Over this oneminus−year period the debtminus−tominus−GDP ratio will have