At the End of 2003, the Government Had a Debt

question 10

Multiple Choice

At the end of 2003, the government had a debt of about $3,924 billion. During 2004, real GDP grew by about 4.2 percent and inflation was about 2.6 percent. About what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)About $63 billion.
• B)About $165 billion.
• C)About $267 billion.
• D)About $429 billion.

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Definitions:

Structures

The arrangement of atoms within a molecule, determining its chemical behavior and properties.

Diels-Alder Reaction

A chemical reaction between a conjugated diene and a substituted alkene (dienophile) to form a cyclohexene derivative, often used in the synthesis of complex natural products.

Cyclization

A chemical reaction that transforms a linear molecule into a cyclic one by forming a ring structure.

Thermal Conditions

Refers to the temperature and heat-related circumstances affecting or controlling a process or reaction.