(solved) literature

  

Referencing Styles : APA (a)What is the critical level of debt-GDP ratio according to current literature? In answering this question you will first present the debt-GDP ratio figures for at least 15 countries from different continents. Make sure you to choose the most indebted as well as the least indebted nations for your illustration. (b)Defining the concept of the government budget balance for a country in the Eurozone, as indicated in the article, develop a relationship for the budget balance where the primary budg … View More (a)What is the critical level of debt-GDP ratio according to current literature? In answering this question you will first present the debt-GDP ratio figures for at least 15 countries from different continents. Make sure you to choose the most indebted as well as the least indebted nations for your illustration. (b)Defining the concept of the government budget balance for a country in the Eurozone, as indicated in the article, develop a relationship for the budget balance where the primary budget deficit is distinguished from the overall budget deficit. Then using this relationship comment on the above statement: “…A stable debt is one that stays the same as a share of gross domestic product. If the interest rate the country pays on its debt is higher than the growth of nominal GDP (that’s real GDP plus inflation), that debt ratio automatically goes up— unless the government runs a surplus in the budget excluding interest….” Discuss fully. (c)Next, you will comment on the difference between the external and internal debt and why it matters to the borrowing government whether its debt is held internally or externally. Read Less