Table 153
Cordelia Saldinia The Above Table Contains Data for the Nations of Cordelia

question 2

Multiple Choice

Table 15.3
Cordelia Saldinia
$$\begin{array} { | l | r | r | } \hline \text { Debt-to-cDP ratio } & 172 \% & 65 \% \\\hline \text { Average annual ecanmaic growth } & & \\\text { unt } & 4.7 \% & 3.2 \% \\\hline \text { Average influtim rate } & 6.3 \% & - 0.3 \% \\\hline \text { Average nominal interest rate } & 2.5 \% & 4.6 \% \\\hline\end{array}$$
The above table contains data for the nations of Cordelia and Saldinia for 2012. Assume seigniorage is zero.
-Refer to Table 15.3.Based on the data in the table,the primary budget deficit necessary to make fiscal policy sustainable in Saldinia is ________ of GDP.

• A) -5.3%
• B) -1.1%
• C) 1.1%
• D) 6.5%

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Definitions:

Farm Incomes

The earnings obtained from agricultural activities after expenses are deducted.

Crop

A cultivated plant that is grown on a large scale commercially, especially a cereals, fruit, or vegetable.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Agricultural Commodities

Raw products derived from farming, ranching, and forestry which are traded on commodities markets, such as grains, livestock, and dairy products.