Question

Suppose that an particular economy has a real GDP of

12.0 trillion in 2004. It grows to

15.0 trillion in 2005.​ Meanwhile, the national debt was

8.0 trillion in 2004. In 2005 the federal government ran a budget deficit of

0.8 ​trillion, which was totally financed by borrowing.

Given this set of circumstances the national debt as a percentage of real GDP has

A.

decreased.

B.

doubled.

C.

remained constant.

D.

increased.

Answer 1