In a time of inflation when the real (i.e., deflated) value of the government debt is constant, the conventionally:
A) reported government budget will show a deficit equal to the inflation rate times the outstanding debt.
B) reported government budget will show a deficit equal to less than the inflation rate times the outstanding debt.
C) reported government budget will be balanced.
D) measured government budget will show a surplus equal to the inflation rate times the outstanding debt.
Correct Answer:
Verified
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