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At the End of 2007,the Government Had a Debt of About

Question 38

Multiple Choice

At the end of 2007,the government had a debt of about $5,000 billion.During 2007,real GDP grew by about 0.8 percent and inflation was about 2.7 percent.About what is the largest deficit the government could have run without raising the debt-to-GDP ratio?


A) 135 billion
B) 143 billion
C) 169 billion
D) 175 billion

Correct Answer:

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