The Accompanying Table Gives Budget Information for a Hypothetical Economy
Question 129
Question 129
Multiple Choice
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Government Spending $450500600640680600 Tax Revenues $425450500620580620 GDP $2,0003,0004,0005,0004,8005,000 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. If year 1 is the ?rst year of this nation's existence and Year 4 is the present year, the public debt as a percentage of GDP in year 4 is
A) 7.5 percent. B) 1.39 percent. C) 2.5 percent. D) 3.9 percent.
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