Suppose That at the Start of Fiscal Year 2013 the Government

question 69

Multiple Choice

Suppose that at the start of fiscal year 2013 the government had a debt of $6300 billion.Suppose that during fiscal year 2015,real GDP grew by about 4 percent and inflation was about 3 percent.What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A) about $184 billion
• B) about $375 billion
• C) about $441 billion
• D) about $632 billion

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Definitions:

Nausea

A feeling of sickness with an inclination to vomit.

Counterconditioning

A behavioral therapy technique that involves replacing an unwanted response to a stimulus with a desired response.

Operant Conditioning

A learning process where the consequences of an action determine the likelihood of that action being repeated in the future.

Swings

Playground equipment consisting of a seat suspended by ropes or chains, used for moving back and forth.