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If the Nominal Deficit Is $100 Billion, Inflation Is 10

Question 9

Multiple Choice

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.

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