Re: jnu mphil 2014- doubt.

Posted by Ayushya Kaul on May 06, 2016; 2:29pm
URL: http://discussion-forum.276.s1.nabble.com/jnu-mphil-2014-doubt-tp7596379p7600457.html

Question 30 anyone?

30) Economy A has a debt-GDP ratio of 30 %, a fiscal deficit  of 4 % of GDP, and its nominal GDP is expected to grow at 16 % p.a. Economy B has a debt-GDP ratio of 28 %, its fiscal deficit is 3.7 % of GDP and its nominal GDP is expected to frow at 12 % p.a. Economy has a debt-GDP ratio of 25 %, a fiscal deficit  of 3 % of GDP, and its nominal GDP is expected to grow at 9 % p.a. If fiscal deficit ratios and expected nominal GDP growth are maintained, which of the following economies is likely to sustain a long-run debt-GDP ratio of at most 30 %?

a) Economy A
b) Economy B
c) Economy C
d) All of the above