Assume that a country's real growth is 2 percent per year, while its real deficit is rising

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Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 percent a year.
a. Can the country continue to afford such deficits in-definitely?
b. What problems might it face in the future?

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Macroeconomics

ISBN: 978-0077307110

8th edition

Authors: David Colander

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Question Posted: Feb 12, 2016 05:09 AM

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Assume that a country's real growth is 2 percent per year, while its real deficit is rising

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a Since the real deficit is rising at a faster rate than real growth in the econ...View the full answer

Macroeconomics

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