In the formula to calculate the real deficit, which of the following decreases the real deficit?
A) A larger nominal deficit
B) Aa higher interest rate
C) A larger debt
D) A lower inflation rate
Correct Answer:
Verified
Q41: Policymakers generally are:
A)more concerned about structural deficits
Q44: If an economy is operating at potential
Q53: Suppose that the economy has a structural
Q56: Suppose that the economy has a structural
Q58: Suppose potential income is $60 billion, actual
Q60: The cyclical surplus is $450 billion, potential
Q62: Holding the nominal deficit, nominal interest rate,
Q66: All other things equal, the real surplus:
A)falls
Q72: The real deficit is $180 billion; inflation
Q79: If the nominal deficit is $200 billion,
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