Multiple Choice
At the end of 2010, the government had a debt of about $9.4 trillion. If during 2011 real GDP were to rise 3% and inflation was 2%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?
A) about $94 billion
B) about $470 billion
C) about $540 billion
D) None of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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