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Roar Roar
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6 years ago
If the government runs a primary deficit in year zero of B0, and, in year 1, decides to stabilize the debt (i.e., prevent the deficit from rising any further), then in year 1 and beyond, it must run a primary surplus equal to
A) zero.
B) B0.
C) (1+r)B0.
D) r.
E) none of the above
Textbook 
Macroeconomics

Macroeconomics


Edition: 6th
Authors:
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vonCOLLINZOvonCOLLINZO
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Roar Author
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#2
5 years ago
Tough macro class, thanks for helping
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