Skip to content

Free preview · 5 questions

Try Sovereign Analyst — Composite Track

No sign-up. No timer. Five questions sampled at random from the full 30-question test. See how you stack up before requesting access for the full assessment and a verifiable certificate.

Question 1 of 5

0 of 5 answered

An African sovereign's debt-to-GDP is 72%. Real GDP growth 4.5%. Effective real interest rate on existing debt 6%. The current primary balance is −2.5% of GDP. Applying the debt-dynamics equation Δ(D/Y) ≈ (r−g)·(D/Y) − pb/Y, the debt-to-GDP path is: