Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 pe

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Step 1: Understand the growth and deficit rates.u000AThe countryu0027s real growth rate is 2% per year,

Assume that a country's real growth is 2 percent per year, while its real deficit is rising 5 percent a year. a. Can the country continue to afford such deficits indefinitely? b. What problems might it face in the future? LO4