Suppose That at the Start of Fiscal Year 2013 the Government

question 52

Multiple Choice

Suppose that at the start of fiscal year 2013 the government had a debt of $6126.5 billion.Suppose that during the same fiscal year,real GDP grew by about 3 percent and inflation was about 1 percent.What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $122 billion
• B)about $184 billion
• C)about $245 billion
• D)about $375 billion

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow in 1943, which posits that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, addressed in ascending order.

Cultural Values

The collective principles, norms, and ideals that shape a society or organization's behavior and beliefs.

Self-Actualization

Bringing to fruition one's natural talents and possibilities, viewed as an essential impulse or requirement inherent in everyone.

Goal Difficulty

Describes how challenging a set goal is to achieve, which can influence motivation and effort levels.