Suppose That at the Start of Fiscal Year 2013 the Government

question 69

Multiple Choice

Suppose that at the start of fiscal year 2013 the government had a debt of $6300 billion.Suppose that during fiscal year 2015,real GDP grew by about 4 percent and inflation was about 3 percent.What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A) about $184 billion
• B) about $375 billion
• C) about $441 billion
• D) about $632 billion

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Definitions:

Na+

Sodium ion, an essential electrolyte involved in maintaining fluid balance, nerve transmission, and muscle function.

Bicarbonate Ion

Anion (HCO3−) remaining after the dissociation of carbonic acid.

Plasma

The liquid component of blood, in which blood cells and other particles are suspended, consisting mostly of water, proteins, and other solutes.

Concentration

The abundance of a constituent divided by the total volume of a mixture.