The current budget balance and debt- GDP ratio and check whether the current fiscal situation is a problem or not.

Question

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Answer 1

Question

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

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Answer 2

Question

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

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Answer 3

Question

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

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Answer 4

Question

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

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Answer 5

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

Answer 6

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.

Answer 7

Chapter 18, Problem 1RQ

To determine

The current budget balance and debt-GDP ratio and check whether the current fiscal situation is a problem or not.

Answer 8

Expert Solution & Answer

Explanation of Solution

The current budget of Country U is a deficit budget and the deficit as on 2018 was around $779 million. The debt-GDP ratio is used for comparing the debt and GDP of a country, which reflects the ability of a government to pay back the debt without any restriction in economic growth. In 2018, the debt-GDP ratio is 106 percent. Most of the economists will not find the debt-GDP ratio of Country U as a serious problem. However, if the future primary debt is added to this, debt will adversely affect in the long term.