The Official Measure of the Deficit

question 12

Multiple Choice

The official measure of the deficit:

• A) depends on the nominal interest rate.
• B) depends on the real interest rate.
• C) always underestimates the correct measure of the deficit when inflation is positive.
• D) differs from the correct measure by the inflation rate times taxes.
• E) differs from the correct measure by the inflation rate times government spending.

---

Definitions:

Dunbar

Refers to the Dunbar's number, a theoretical cognitive limit to the number of people with whom one can maintain stable social relationships.

Group Sizes

The number of individuals constituting a group, which can affect dynamics, interaction, and outcomes in social, educational, and work settings.

Brain Size

The physical size of the brain, often related to various factors including species, age, and cognitive abilities.

Facial Muscles

A group of striated skeletal muscles situated beneath the skin of the face, involved in facial expression.