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    Economics Study Set 8
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    Exam 31: Deficits and Debt: the Austerity Debate
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    If the Real Deficit Is $100 Billion, the Inflation Rate
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If the Real Deficit Is $100 Billion, the Inflation Rate

Question 27

Question 27

Multiple Choice

If the real deficit is $100 billion, the inflation rate is 7.5 percent, and the nominal deficit is $400 billion, then total debt is:


A) $1 trillion.
B) $2 trillion.
C) $3 trillion.
D) $4 trillion.

Correct Answer:

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