At the End of 2010, the Government Had a Debt

question 224

Multiple Choice

At the end of 2010, the government had a debt of about $9.4 trillion. If during 2011 real GDP were to rise 3.2% and inflation were 1.6%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $150.4 billion
• B)about $188.0 billion
• C)about $451.2 billion
• D)about $481.3 billion

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Definitions:

Treatment Effect

The impact of a specific intervention or treatment in experimental research, measured by comparing outcomes between treated and control groups.

Experimental Research

A research method involving the manipulation of variables to test hypotheses and determine cause-and-effect relationships.

Selection Bias

A distortion of statistical analysis results due to the method of collecting samples, which might not be representative of the entire population.