If Annual GDP Growth Is 2%,the Interest Rate Is 5%,there

Multiple Choice

If annual GDP growth is 2%,the interest rate is 5%,there is no price inflation,and the government wants to keep national debt equal to GDP,then each year the government must run a

A) primary budget deficit equal to 3% of national income
B) primary budget deficit equal to 2% of national income
C) primary budget surplus equal to 1% of national income
D) primary budget surplus equal to 2% of national income
E) primary budget surplus equal to 3% of national income