Economy in the numerical example

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Reference no: EM13948422

For the economy in the numerical example in section 9.3, where

b(0)=50%

(i) At what time period does the debt/income ratio equal 100%?

(ii) If the nominal interest rate is higher so i -gy =2.5%, at what time period does the debt/income ratio equal 100%?

(iii) If the primary de cit/GDP is lower at 1%, at what time period does the debt/income ratio equal 100%?

Reference no: EM13948422

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