Suppose That a Country Has an Inflation Rate of About

question 3

Multiple Choice

Suppose that a country has an inflation rate of about 2 percent per year and a real GDP growth rate of about 2.5 percent per year.Then the government can have a deficit of about

• A)5 percent of GDP without raising the debt-to-income ratio.
• B)4.5 percent of GDP without raising the debt-to-income ratio.
• C)1.25 percent of GDP without raising the debt-to-income ratio.
• D).5 percent of GDP without raising the debt-to-income ratio.

Appreciate the necessity of adaptive strategies in response to environmental scanning findings.

Examine the impact of competitive forces and the need for innovation in product and service offerings.

Understand global population trends and demographic estimates.

Recognize demographic characteristics that describe a population.

---

Definitions:

Volcanic Fields

Regions of the Earth's crust that are prone to volcanic activity and are scattered with multiple volcanoes.

Magma

A molten or semi-molten rock material beneath the Earth's surface from which igneous rock is formed by cooling.

Continental Crust

The relatively thick part of the Earth's crust that forms the large landmasses. It is generally older and more complex than the oceanic crust.

Elevation

The height of a point or object above a reference level, typically above sea level.