-Suppose That Initially There Is No Public Debt

question 54

Multiple Choice

-Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 3?

• A)1.7 percent
• B)2.0 percent
• C)7.7 percent
• D)5.9 percent

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Definitions:

Consistent Principle

A rule or concept that does not contradict itself and is coherent with other principles within the same theoretical framework.

Pentagonal

Having five angles and five sides; specifically referring to geometrical shapes.

Round

Characterizes an object with a circular shape or a process of rounding numbers to a specified degree of accuracy.

Concrete

Relating to objects or physical matter as opposed to abstract concepts, tangible and perceptible.