If the Budget Deficit for Each Year Is Held to a Constant

question 44

Multiple Choice

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 decreasing rate.
• B)Rise at a constant rate.
• C)Begin to fall,but then continually rise.
• D)Initially rise but eventually would become negative.