All of a country's debt is denominated a foreign currency, the U.S. dollar. Its GDP growth rate is 3% the interest rate on its debt is 7%, its external debt-to-GDP ratio is 90%, and its primary balance is zero. What rate of change of the dollar will raise its external debt-to-GDP ratio to 100%?

Answer rating: 100% (QA)

To calculate the required rate of change of the dollar that would raise the countrys external debtto... View the full answer