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 = 3%
- growth rate of real GDP = 1%
- current debt-to-GDP ratio = 40%
- primary budget deficit as a percentage of GDP = 2%
Over this one-year period,the debt-to-GDP ratio will have risen by

A) 82 percentage points.
B) 8.2 percentage points.
C) 0.82 percentage points.
D) 2.8 percentage points.
E) 0.28 percentage points.