Multiple Choice
Proper inflation accounting is necessary to measure the size of the real deficit because
A) as a lender, the government gains from inflation.
B) otherwise, the deficit is understated in inflationary times.
C) the government is a borrower that pays back dollars of less real value in inflationary times.
D) interest payments tend to fall in inflationary times.
Correct Answer:
Verified
Correct Answer:
Verified
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