If the nominal deficit is $200 billion, the real deficit is $180 billion, and total debt is $2 trillion, then inflation is:

Name: If the nominal deficit is $200 billion, the real deficit is $180 billion, and total debt is $2 trillion, then inflation is:
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The correct answer is A.The inflation rate is calculated as the difference between the nominal deficit and the real deficit, divided by the real deficit. In this case, the inflation rate is (200 - 180) / 180 = 0.111, or 11.1%.

If the Nominal Deficit Is $200 Billion, the Real Deficit