Suppose That a Country Has an Inflation Rate of About

question 50

Multiple Choice

Suppose that a country has an inflation rate of about 4 percent per year and a real GDP growth rate of about 3 percent per year. What is the highest deficit the government can afford without raising the debt-to-income ratio?

• A)about 12 percent of GDP
• B)about 7 percent of GDP
• C)about 1 percent of GDP
• D)0

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Definitions:

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A chronic condition in which the heart's ability to pump blood is inadequate, leading to the buildup of fluid in the body.

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Eyeglasses designed to improve vision for reading and other close tasks, often used by individuals with presbyopia.

Non-slip Soles

A feature of footwear designed to increase grip and reduce slipping on surfaces.