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Suppose that a country has an inflation rate of about 2 percent per year and a real growth rate of about 3 percent per year. Suppose also that it has nominal GDP of about 100 billion units of currency. What is the highest deficit it can have without raising the debt-to-income ratio?
Ratio
A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.
Household
A group of people, often a family, who live together in a single dwelling.
Frequency Distribution
The representation, often in graphical form, of the frequencies within a dataset to show how the values in the set are distributed.
Well Defined
Clearly explained or identified with precise boundaries or criteria.
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