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Posted: **Thu May 26, 2022 7:50 am**

: 10 Marks Using A Diagram To Illustrate Your Answer Explain Why The Debt To Gdp Ratio In An Economy May Explode Over Ti 1 (18.11 KiB) Viewed 12 times

[10 marks] Using a diagram to illustrate your answer explain why the debt to GDP ratio in an economy may explode over time when the real interest rate is higher than the growth rate of real GDP. Explain what a government can do in such a case to keep under control the debt to GDP ratio.