Which of the Following Statements Gives the Correct Definition of the Real

question 5

Multiple Choice

Which of the following statements gives the correct definition of the real deficit?

• A)Real deficit = Nominal deficit + (inflation × total debt)
• B)Real deficit = Nominal deficit + (total debt/inflation)
• C)Real deficit = Nominal deficit - (total debt/inflation)
• D)Real deficit = Nominal deficit - (inflation × total debt)

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