At the End of 2010, the Government Had a Debt

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 3.2% and inflation were 1.6%, what is the largest deficit the government could have run without raising the debt-to-GDP ratio?

A) about $150.4 billion
B) about $188.0 billion
C) about $451.2 billion
D) about $481.3 billion