What Problems Exist When You Try to Measure the True

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The Answer is The size of the public debt is sensitive to both inflation and interest rates. Inflation tends to increase budget deficits and requires the government to borrow more in nominal terms. When interest rates rise, the market value (as opposed to the par or face value) of the debt falls. Also, to get a true measure of the debt's net size we need to consider assets owned by government and possibly contingent liabilities (such as deposit insurance programs and government loan guarantees) which might at some future date add to the government's debt burden.

What Problems Exist When You Try to Measure the True

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What Problems Exist When You Try to Measure the True

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