Suppose That at the Start of Fiscal Year 2019 the Government

Multiple Choice

Suppose that at the start of fiscal year 2019 the government had a debt of $6220 billion. Suppose that during the same fiscal year, real GDP grew by about 3 percent and inflation was about 1 percent. What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

A) about $122 billion
B) about $184 billion
C) about $249 billion
D) about $375 billion