Suppose That at the Start of Fiscal Year 2015 the Government

question 87

Multiple Choice

Suppose that at the start of fiscal year 2015 the government had a debt of $6220 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 $249 billion
• D) about $375 billion

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Definitions:

Phi Phenomenon

A visual illusion in which stationary objects shown in rapid succession appear to be in motion.

Pragnanz

A principle of Gestalt psychology suggesting that individuals will perceive and interpret complex images in the simplest form possible.

Figure-Ground Reversal

A visual perception phenomenon where the viewer can shift perspective to see either the foreground or the background as the dominant aspect.

Top-Down Processing

This is the psychological process where perceptions start with a general overview before moving to specific details.