Consider the Following Data About Government Debt and Deficit in a Given

Multiple Choice

Consider the following data about government debt and deficit in a given year: - real interest rate on government bonds = 2%
- growth rate of real GDP = 3%
- current debt-to-GDP ratio = 50%
- primary budget deficit = 0
Over this one-year period,the debt-to-GDP ratio will have

A) remained unchanged.
B) risen by 50%.
C) fallen by 50%.
D) risen by 0.5 percentage points.
E) fallen by 0.5 percentage points.