What is the sustainable deficit ratio if the , Ask an Expert

Economics

Measuring Inflation - Balanced Budget

Guatemala government has an outstanding debt of $18.23 billion and its GDP is 30% higher than the debt. The nominal interest rate is 5%. The inflation rate is 2%.

a. What is the sustainable deficit ratio if the country is growing at 5%? How about when inflation goes to â?2%?

b.What about if the country grows at 2%? How about when inflation goes to â?7%?

c. Is Guatemala's debt sustainable if the government runs a balanced budget in both a and b.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M926504

Have any Question?Write your Review or question?

Related Questions in Business Economics

A professional baseball pitcher takesnbsp1566nbspseconds to

A professional baseball pitcher takes 15.66 seconds to throw each? pitch, on average. Assume the? pitcher's times per pitch follow the normal probability distribution with a standard deviation of 2.6 seconds. Complete pa ...

Suppose the quantity of fish purchased by mr singh family

Suppose the quantity of fish purchased by Mr Singh family is 21 kilos per year when the price is $11.50 per kilo and 17 kilos per year when the price is $20.50 per kilo. Calculate the price elasticity of demand coefficie ...

A suppose that for a given year national saving in a

a. Suppose that, for a given year, national saving in a country (an open economy) equals 100, private consumption equals 50, and government consumption equals 20. What is the level of output in this country in this year? ...

Of the people who fished at clearwater park today 45 had a

Of the people who fished at Clearwater Park today, 45 had a fishing license, and 5 did not. Of the people who fished at Mountain View Park today, 36 had a license, and 4 did not. (No one fished at both parks.) Suppose th ...

Find the minimum sample size necessary to be 99 confident

Find the minimum sample size necessary to be 99% confident that the population mean is within 3 units of the sample mean given that the population standard deviation is 29. (a) What is the critical value that corresponds ...

A cartel is branch of an oligopoly there are still a

A cartel is branch of an oligopoly. There are still a handful of large firms and many smaller firms. For instance, the diamond industry and the petroleum industries are examples are oligopolies. However, the main differe ...

Suppose that the forward rate f at 6 months between and

Suppose that the forward rate F at 6 months between $ and Euro is Euro = $1.2 The interest rate at six months in the Euro Area and in the USA is i Euro =3% i USA=2% What is the spot exchange rate? [x] a.Euro = $1.21 b.Eu ...

Model this situation using a game tablehawk and dovenbsptwo

Model this situation using a game table. Hawk and Dove: Two animals are fighting over some prey. Each can be passive or aggressive. Each prefers to be aggressive if the other is passive, and passive if the other is agg ...

What is marginal revenue for both perfect competition and

What is Marginal Revenue? For both Perfect Competition and Monopoly, explain the relationship between marginal revenue and demand.

1 describe using pseudocode as described in class an

1. Describe using pseudocode as described in class an algorithm that takes a list of n integers a1, a2, ..., an, and finds the average of all negative integers in the list. Be sure to initialize the variables. 2. The bub ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert