The "Official Measure" of the Deficit (The One Reported by the Government)

question 59

Multiple Choice

The "official measure" of the deficit (the one reported by the government) :

• A) overestimates the real budget deficit whenever the inflation rate is positive.
• B) tells us the change in government nominal debt.
• C) is equal to nominal interest payments on the debt plus the primary deficit.
• D) All of the above.
• E) None of the above.