Consider the Following Data About Government Debt and Deficit in a Given

question 103

Multiple Choice

Consider the following data about government debt and deficit in a given year: - real interest rate on government bonds = 3%
- growth rate of real GDP = 1%
- current debt- to- GDP ratio = 40%
- primary budget deficit as a percentage of GDP = 2%
Over this one- year period the debt- to- GDP ratio will have risen by

• A)8.2 percentage points.
• B)82 percentage points.
• C)0.82 percentage points.
• D)0.28 percentage points.
• E)2.8 percentage points.

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Definitions:

-Penia

A suffix meaning deficiency or lack of something, commonly used in medical terminology, such as leukopenia (deficiency of white cells in the blood).

Cost/o

A prefix in medical terms related to ribs.

Crani/o

A prefix relating to the skull.

Arthrocentesis

A medical procedure involving the puncture of a joint space with a needle to remove synovial fluid for diagnostic or therapeutic purposes.