At the End of 2012,the Government Had a Debt of About

question 20

Multiple Choice

At the end of 2012,the government had a debt of about $11.3 trillion.If during 2013 real GDP rose 2% and inflation was 2.2%,what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

• A)about $226.0 billion
• B)about $248.6 billion
• C)about $474.6 billion
• D)about $561.8 billion

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Definitions:

Internal Auditors

Professionals who conduct audits within an organization to assess the effectiveness, efficiency, and compliance of operational processes and controls.

Accounting Department

The division within a business that is responsible for managing the financial records, payroll, receivable and payable accounts, and financial reporting.

Passive Continental Margin

A region where the transition between oceanic and continental lithosphere that is not an active plate boundary occurs.

Oceanic Ridge

Underwater mountain systems formed by plate tectonics, consisting of continuous volcanic mountain chains in the ocean.