At the End of 2007,the Government Had a Debt of About

question 29

Multiple Choice

At the end of 2007,the government had a debt of about $5,000 billion.During 2007,real GDP grew by about 0.8 percent and inflation was about 2.7 percent.About what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)135 billion
• B)143 billion
• C)169 billion
• D)175 billion

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