If the budget deficit for each year is held to a constant nominal value during constant inflationary times, then the inflation-corrected or real value of the total debt would
A. Rise at a constant rate.
B. Initially rise but eventually would become negative.
C. Rise at a decreasing rate.
D. Begin to fall, but then continually rise.
Answer: C
You might also like to view...
What are four functions of financial instruments?
What will be an ideal response?
An increase in the level of structural unemployment will shift the long-run Phillips curve
Indicate whether the statement is true or false
Economists typically date the beginning of the gold standard to the period:
a. before 1500. b. before 1776. c. between 1880 and 1914. d. between the two world wars. e. between 1970 and 2000.
Which of the following statements is true about the behavior of the CPI?
a. It has risen steadily since 1960. b. It has fallen steadily since 1960. c. It fell during the 1960s and has risen ever since. d. It rose sharply in the 1970s and then declined in the 1980s. e. It has risen and fallen with roughly equal frequency since 1960.