Suppose That a Country Has an Inflation Rate of About

question 121

Multiple Choice

Suppose that a country has an inflation rate of about 3 percent per year and a real growth rate of about 5 percent per year. Suppose also that it has nominal GDP of about 100 billion units of currency. What is the highest deficit it can have without raising the debt-to-income ratio?

• A) just under 1 billion units
• B) just under 3 billion units
• C) just under 6 billion units
• D) just under 8 billion units

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Definitions:

Cooperative Learning

An instructional strategy where small groups of students work together on a common task, promoting each other's learning.

Immediate Problems

Urgent issues or challenges that require prompt attention and resolution to prevent further complications or negative outcomes.

Response Cost

An application of contingent withdrawal of a positive reinforcer punishment. A response (or behavior) “costs” the individual something he or she likes, such as money, points, or activities/privileges. Receiving a speeding ticket is an example of a response cost because the behavior of speeding costs individuals something they find reinforcing—money.

Fair Contracts

Agreements or arrangements that are just, equitable, and agreed upon by all parties involved, often emphasizing fairness and mutual benefit.