2. In times of inflation, the governments budget deficit is because government expenditure includes the interest payments

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2. In times of inflation, the government’s budget deficit is because government expenditure includes the interest payments on government debt.

a. overstated, nominal

b. overstated, real

c. understated, nominal

d. understated, real

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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