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If a $6 Billion Economy Is Growing at a Real

Question 20

Multiple Choice

If a $6 billion economy is growing at a real rate of 5 percent a year and there is no inflation, what must the government do to maintain a constant debt-to-GDP ratio?


A) Run a surplus of $300 million
B) Balance the budget
C) Run a deficit of $300 million
D) Run a deficit of $600 million

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