If the nominal deficit is $100 billion, inflation is 10 percent, and total debt is $2 trillion, then the real deficit is:
A) −$20 billion (a surplus) .
B) −$100 billion (a surplus) .
C) $20 billion.
D) $100 billion.
Correct Answer:
Verified
Q62: Holding the nominal deficit, nominal interest rate,
Q63: If the nominal deficit is $300 billion,
Q64: If the U.S. inflation rate increases unexpectedly
Q65: An unanticipated increase in the inflation rate
Q66: All other things equal, the real surplus:
A)falls
Q68: Government debt is defined as:
A)a shortfall of
Q69: The real deficit is the nominal deficit
Q70: Bond holders:
A)lose when actual inflation equals expected
Q71: If the real deficit is $100 billion,
Q72: The real deficit is $180 billion; inflation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents