For Each of the Following Scenarios,state the Effect on the Debt-To-GDP

question 45

Essay

For each of the following scenarios,state the effect on the debt-to-GDP ratio:
a. The growth rate of the labour force increases.
b. The primary deficit increases.
c. Total factor productivity decreases.
d. Seigniorage decreases.
e. The nominal interest rate is constant and the growth rate of the money supply increases.
f. The nominal interest rate is not constant and the growth rate of the money supply increases.

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