Suppose that for the nation of Calliope,the debt-to-GDP ratio is 325%,the average annual growth rate is 1.1%,the average inflation rate is 0.5%,and the average nominal interest rate is 2.2%.Based on this information,determine if fiscal policy is sustainable in Calliope,and if not,what the primary budget deficit would have to be to make fiscal policy sustainable.

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The Answer of Suppose that for the nation of Calliope,the debt-to-GDP ratio is 325%,the average annual growth rate is 1.1%,the average inflation rate is 0.5%,and the average nominal interest rate is 2.2%.Based on this information,determine if fiscal policy is sustainable in Calliope,and if not,what the primary budget deficit would have to be to make fiscal policy sustainable.

Suppose That for the Nation of Calliope,the Debt-To-GDP Ratio Is