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Question
| Year | Expenditures | Tax Revenues | GDP |
| 1 | 400 | 375 | 5,000 |
| 2 | 290 | 330 | 5,300 |
| 3 | 430 | 320 | 5,600 |
| 4 | 470 | 350 | 6,000 |
Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4?
A) 5.8 percent
B) 7.8 percent
C) 3.6 percent
D) 2.0 percent
Answer
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