Suppose That at the Start of Fiscal Year 2015 the Government

question 85

Multiple Choice

Suppose that at the start of fiscal year 2015 the government had a debt of $6060 billion.Suppose that during the same fiscal year,real GDP grew by about 3 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 $243 billion
• D) about $303 billion

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water.

Glucose

A simple sugar that is an important energy source in living organisms and is a component of many carbohydrates.

Carbon Dioxide

A colorless gas with a density about 60% higher than that of dry air, contributing to the greenhouse effect and global warming.

Herbivore

An animal that feeds primarily on plants.