Assume that the debt-to GDP ratio is 100%, the inflation rate is 2.5% and the total budget deficit is 4% of GDP.What is the inflation-adjusted budget deficit as a percentage of GDP?
A) 6) 5%
B) 2) 5%
C) 1) 5%
D) 1) 0%
E) it cannot be determined from this information
Correct Answer:
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