If the US Inflation Rate Increases Unexpectedly and Government Revenues, Expenditures, and Expenditures

question 112

Multiple Choice

If the U.S. inflation rate increases unexpectedly and government revenues, expenditures, and nominal interest rates remain unchanged:

• A)both the U.S real and nominal budget deficits increases.
• B)only the U.S. real budget deficit increases.
• C)only the U.S. real budget deficit decreases.
• D)both the U.S. real and nominal budget deficits decreases.

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Definitions:

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, composed of multiple nations with rich history and diverse cultures.

United Nations

An international organization founded in 1945 to promote world peace, security, and cooperation among its member countries.

Headquarters

The main office or center of operations of an organization or company, where key managerial and administrative activities are coordinated.

New York

A state in the northeastern U.S., known for New York City and its status as a cultural and financial hub.