Why is debt stabilisation important for an economy? On the basis of government budget constraint explain how debt-to-GDP ratio can be maintained. 

Debt stabilization is an important economic objective because high levels of debt can have serious negative consequences for an economy. When a government takes on too much debt, it can become more difficult and expensive to borrow in the future. High levels of debt can also lead to higher interest rates, which can reduce private investment and slow economic growth. Additionally, high levels of debt can create uncertainty and undermine confidence in the economy, leading to further economic instability.

To maintain a sustainable level of debt, governments need to ensure that their debt-to-GDP ratio is stable or declining over time. The debt-to-GDP ratio is the ratio of a country's total debt to its gross domestic product (GDP), and it is a widely used measure of a country's debt burden. A stable or declining debt-to-GDP ratio indicates that the government __________ _____ ________ ______ ______.
______ ___ _______ __________ _______ _________ ________.
_____ _____ _________ ____ _________ _________ ______ _____ _________ ______ ___.
________ _________ ___ ________ _________ ___.
______ _______ ______ ___ _______.
_________ __________ __________ ______ __________ _________.
____ ______ _______ _________ _______ _________ ______ ________ _____ ____ ________.
__________ ________ ________ ______ ______ _____ ____ ________ ______ _____ __________ __________.
____ ____ ___ _________ _______ ____ _______ _________ ____ __________.
______ _________ ___ _____ __________ ______ _________.
____ _______ ________ __________ ____.
___ ______ _________ _______ _________ _____.
_______ __________ _______ ______ ___ ____ ___.
_________ ________ _____ _______ ____ ____ _____ _________ _____ _____.
____ _______ _________ ______ ________ ____ _______ ______ _______ ______.
_______ ________ ___ _______ ________ _____ _______ ____ _______.
_________ _____ ______ ___ ___ ___ ______ ________ _________ _____ __________.
___ __________ _________ ________ _________ __________ _________ __________.
_________ _____ _______ _____ ______.
_______ _______ _____ _______ ____ ____ __________.
________ ___ ___ _________ ____ _____.
_____ ________ ______ ___ ________ _______ ________ _______ _________ ______ ______ ______.
_________ _______ ______ ____ _________ ______ _______.
______ ____ _______ ________ ______ __________ _____ _____ _______ _______.
________ ________ ____ ____ ________ ______ _____ _______ _____ __________ ____.
__________ __________ _____ ___ _____ _________ ___.
________ __________ _____ ________ __________ _______ _______.
_________ __________ _______ ___ ____ ______ ___ ____ _____ ___ _____ _____.
______ ____ _____ _________ _____ __________ _________ __________ ________ _______.
___ __________ _______ ______ _____ ___.
_____ _________ ______ _____ ___ _______ ____ _____ ________ ___.
______ ________ ____ _________ ____ __________.
________ _________ ______ __________ ________ _____ _________ ______ ______.
________ ________ ______ _________ ________ _____ _____.
________ ____ ________ _____ ____ __________ _______ _________ _______ _____ _____ _____.
____ __________ _______ ______ ___ ____ _________ __________ _________ _____ _________.
_________ __________ _______ _______ __________ ____ ______.
_________ ______ _______ _________ _______ _______ _________.
__________ ________ ______ ________ _______ _______ ________ ____ _____ ___.
________ ______ _______ ________ _____ ___ ___ _____.
_______ ______ ___ _______ _______.
________ _____ _____ ________ ____ ___ ________ ______ ____ ___ _________ _______.
____ _______ ___ ____ _____.
_______ _____ ________ ____ __________ _______ __________ ______.
_________ _________ ___ _____ ___.
______ ________ __________ _______ _______ __________.
_____ _____ __________ ________ ______ ______ ________ ____ ___ _______ _________ _____.
____ _________ _________ _____ _____ _________.
___ ___ _________ ___ ______ ________ ________ _________.
________ ____ _______ ________ _________.
__________ __________ ___ ____ ______ _______ ______ _____ ________ _______ _______.
__________ ___ __________ ________.
Get Full Answer on WhatsApp