Neco 2022 Economics Question 42
Practice objective / multiple choice question 42 from the 2022 Neco Economics examination.
A country's public debt dynamics are summarised as follows: the current debt‑to‑GDP ratio is 60 %, the primary deficit (deficit before interest payments) equals 5 % of GDP each year, and the average interest rate on the existing debt is 8 % per annum. Assume real GDP growth is zero.\n\nCalculate the debt‑to‑GDP ratio after five years if the same primary deficit and interest rate continue unchanged. Express your answer as a percentage rounded to two decimal places.
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About This Question
This is Neco 2022 Economics Question 42. It is one of the objective questions from the 2022 Neco Economics examination.
Difficulty level: Medium .
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