To correct for inflation when calculating real debt, onemust:O b.O c.add the inflated debt and the nominal budgetdeficit.assume that real debt is zero.multiply the percentage change of debt by theinflation rate.O d. deduct the amount of inflated debt from thenominal budget deficit.

The amount of debt that remains after adjusting for the effects of inflation is referred to as "real…

To correct for inflation when calculating real debt, one must: O a. add the inflated debt and the nominal budget deficit. O b. c. assume that real debt is zero. multiply the percentage change of debt by the inflation rate. O d. deduct the amount of inflated debt from the nominal budget deficit.

To correct for inflation when calculating real debt, one must: O a. add the inflated debt and the nominal budget deficit. O b. c. assume that real debt is zero. multiply the percentage change of debt by the inflation rate. O d. deduct the amount of inflated debt from the nominal budget deficit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

To correct for inflation when calculating real debt, one
must:
O b.
O c.
add the inflated debt and the nominal budget
deficit.
assume that real debt is zero.
multiply the percentage change of debt by the
inflation rate.
O d. deduct the amount of inflated debt from the
nominal budget deficit.

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