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The Real Interest That Government Pays on Its Debt

Question 30

Multiple Choice

The real interest that government pays on its debt


A) is equal to the nominal interest rate times the debt (i x D) .
B) is equal to the nominal interest rate times the cash deficit (i x dc) .
C) is equal to the real interest rate times the cash deficit (r x dc) .
D) is equal to the real interest rate times the debt (r x D) .

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