Suppose That at the Start of Fiscal Year 2010 the Government

question 79

Multiple Choice

Suppose that at the start of fiscal year 2010 the government had a debt of $6250 billion. Suppose that during the same fiscal year real GDP grew by about 4 percent and inflation was about 2 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 $245 billion
• D)about $375 billion

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