In a Time of Inflation When the Real (I

Multiple Choice

In a time of inflation when the real (i.e., deflated) value of the government debt is constant, then the conventionally:

A) reported government budget will show a deficit equal to the inflation rate times the outstanding debt.
B) reported government budget will show a deficit equal to less than the inflation rate times the outstanding debt.
C) reported government budget will be balanced.
D) measured government budget will show a surplus equal to the inflation rate times the outstanding debt.