At the End of 2010, the Government Had a Debt

question 28

Multiple Choice

At the end of 2010, the government had a debt of about $9.4 trillion. If during 2011 real GDP were to rise 3% and inflation was 2%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $94 billion
• B)about $470 billion
• C)about $540 billion
• D)None of the above are correct.

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Definitions:

Pituitary Gland

A small, pea-sized gland located at the base of the brain, responsible for releasing hormones that regulate various bodily functions.

Master Gland

A term often used to describe the pituitary gland due to its role in controlling several other hormone-secreting glands.

Endocrine Glands

Glands in the body that release hormones directly into the bloodstream, influencing various physiological functions.

Cognitive Learning

A process of acquiring knowledge and understanding through thought, experience, and the senses.