The government of a certain country is debating cutting the federal budget mid-year. The goal is to reduce the national debt, which is $12 trillion.

a) One group wanted to reduce the budget by $90 billion. How large is this change relative to the national debt?

b) Another group wanted to reduce the budget by $30 billion. How large is this change relative to the national debt?

c) If a politician wanted to argue for a larger cut, would he or she use the absolute or the relative change to justify his or her position? Why?

d) If a politician wanted to argue for a smaller cut, would he or she use the absolute or the relative change to justify his or her position? Why?

a) This change relative to the national debt is about...............................?%.

(Round to the nearest hundredth as needed.)

b) This change relative to the national debt is about...............................?%.

(Round to the nearest hundredth as needed.)

c) Choose the correct answer below.

A.

The politician should use the relative change. The larger percent decrease reflects a larger cut relative to the $12 trillion.

B.

The politician should use the relative change. The smaller percent decrease reflects a larger cut relative to the $12 trillion.

C.

The politician should use the absolute change. The smaller absolute change reflects a larger cut of the $12 trillion.

D.

The politician should use the absolute change. The larger absolute change reflects a larger cut of the $12 trillion.

d) Choose the correct answer below.

A.

The politician should use the relative change. The smaller percent decrease reflects a smaller cut relative to the $12 trillion.

B.

The politician should use the absolute change. The smaller absolute change reflects a smaller cut of the $12 trillion.

C.

The politician should use the relative change. The larger percent decrease reflects a smaller cut relative to the $12 trillion.

D.

The politician should use the absolute change. The larger absolute change reflects a smaller cut of the $12 trillion.