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Set of circumstances the national debt

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Reference no: EM132021382

Suppose that a 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 the set of circumstances the national debt as a percentage has?

a. increased

b. decreased

c. doubled

d. remain constant

Reference no: EM132021382

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