What is most sustainable?

Discussion in 'Economics' started by Voodoo-king, Jul 21, 2011.

  1. Voodoo-king

    Voodoo-king

    Economy A has debt 100% of GDP, taxes/revenues are 20% of GDP.

    Economy B has 80% debt of GDP but taxes/revenues are 40% of GDP.

    The deficit is the same for both.

    Witch economy will best be able to handle an increase in interest rates from say 3% to 10%?
     
    #1     Jul 21, 2011
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  2. RewriteQuran

    RewriteQuran

    Economy B has 80% debt of GDP but taxes/revenues are 40% of GDP is better.
     
    #2     Jul 22, 2011
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