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 $6300 billion. Suppose that during fiscal year 2019, real GDP grew by about 5 percent and inflation was about 2 percent. What is the largest deficit the government could have run without raising the debt-to-GDP ratio?

A) about $126 billion
B) about $315 billion
C) about $441 billion
D) about $630 billion