Suppose Inflation Were Proceeding at a Rate of 10 Percent

Suppose inflation were proceeding at a rate of 10 percent per year. If the real deficit were in balance, then the nominal budget would be

A) in surplus by 10 percent.
B) in surplus by something less than 10 percent.
C) in surplus by something more than 10 percent.
D) in deficit by a percentage that depends on the size of the outstanding debt.
E) none of the above.