The primary conclusion of using inflation accounting is that inflation
A. distorts the tax system and results in slower economic growth.
B. reduces the national debt to its nominal value instead of its real value.
C. causes recessions and increases the structural deficit.
D. distorts government budget accounting by exaggerating interest expense.
Answer: D
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Dole Co operates in a monopolistically competitive market. Which of the following characterizes Dole Co's market?
A) Dole Co. supplies a small portion of the market's output. B) Dole Co.'s product is slightly different from its competitors. C) Dole Co. faced no barrier to entry when it decided to enter its market. D) All of the above describe Dole Co.'s market.
According to monetarists, which of the following would be most important for the control of inflation?
a. a steady increase in federal expenditures b. the imposition of price controls c. keeping the growth rate of the money supply low and steady d. a steady increase in the size of the budget deficit
A general formula for the multiplier is
What will be an ideal response?
Which of the following will increase investment spending?
A. more optimistic business expectations B. an increase in interest rates C. an increase in business taxes D. a decrease in capacity utilization