Answer:
d. 3.85 trillion
Explanation:
Step 1: Given data
GDP = GDP grew by = 4% = 0.04
R = inflation rate was = 2.5% = 0.025
D = government budget deficit was = $250 billion
Step 2: Formula
X = debt at the start of last year
X = D / (GDP + R)
Step 3: Computation
X = 250 billion / (0.04 + 0.025)
X = 250,000,000,000 / 0.065
X = 3,846,153,846,153.85
Step 4: Convert to trillion
X = 3,846,153,846,153.85 / 1,000,000,000,000
X = 3.85 trillion
The correct option is d. 3.85 trillion
Hope this helps!