Simplify the change rate of the debt ratio equation, g_{d} = g_{D} - g_{Y}, using the expression for the debts growth rate, D_{t+1} = (1+i_{t})D_{t} + G_{t} - T_{t} g_{d} = Growth rate of deficit g_{D} = Growth rate of the debt g_{Y} = growth rate D_{t} = Central Government debt G_{t} = Government Expenditure T_{t} = Taxes minus trasnfers

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ANS WER g d g D g Y g d D t 1 D t D t g Y g d 1 i t D ... View the full answer