Is guatemala debt makes if the government runs

Reference no: EM1329415

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.

Reference no: EM1329415

Questions Cloud

Create a class titled schooltextbook in java : Write the application with an array that holds 5 instances of the SchoolTextBook class, filled without prompting the user for input. Next prompt the used to enter a field for sorting, sort array of objects based on the user input.

Supply chain compromises : Suggest some other measures that Pfizer can consider to avoid similar incidents of fake medicines entering their supply chain in the future

Evaluate the pricing strategy of the product : Evaluate the pricing strategy of the product (iPhone).

Explain internet strategic management process : Explain Internet strategic management process and How does it implement the decisions to get there

Is guatemala debt makes if the government runs : Is Guatemala debt makes if the government runs a balanced budget in both a and b.

Explain the importance of the chosen metrics : Explain the importance of the chosen metrics and How do these measurements help to ensure competitive advantage?

Explain how to compile and run a standalone java application : Write a simple Java program that incorporates as a minimum three best practices for making your code readable and understandable by yourself and others.

Planning and organizing budgeting : Planning- planning offers an organization an advantage to identify possible problems and to develop a course of action to alleviate those problems.

Death penalty-cruel and unusual punishment : Where does the law currently stand on whether the death penalty is cruel and unusual punishment?

User Account

All Pages