Suppose That a Country Has an Inflation Rate of About

question 121

Multiple Choice

Suppose that a country has an inflation rate of about 3 percent per year and a real growth rate of about 5 percent per year. Suppose also that it has nominal GDP of about 100 billion units of currency. What is the highest deficit it can have without raising the debt-to-income ratio?

• A) just under 1 billion units
• B) just under 3 billion units
• C) just under 6 billion units
• D) just under 8 billion units

---

Definitions:

Pounds of Plastic

A measure of weight used to quantify plastic material, often used in manufacturing or recycling contexts.

Campaign Speeches

Public addresses given by politicians or candidates aiming to persuade or inform voters about their platforms, policies, and values during an election campaign.

Flyers Mailed

The number of printed promotional materials sent out to recipients via postal services to communicate information or advertise.

Votes

The expression of a preference or decision in a democratic process, often seen in elections, referendums, or organizational decision-making.