Proper Inflation Accounting Is Necessary to Measure the Size of the Real

question 62

Multiple Choice

Proper inflation accounting is necessary to measure the size of the real deficit because

• A)as a lender, the government gains from inflation.
• B)otherwise, the deficit is understated in inflationary times.
• C)the government is a borrower that pays back dollars of less real value in inflationary times.
• D)interest payments tend to fall in inflationary times.

---

Definitions:

Infanticide

The deliberate act of killing an infant or very young child, which can occur due to various cultural, social, or psychological reasons.

Under five

A term commonly used in public health to refer to children aged zero to four years, reflecting a critical period for child development and health interventions.

Accidental deaths

Fatalities resulting from unforeseen or unexpected events, often preventable.

SARS outbreak

refers to the global epidemic caused by the Severe Acute Respiratory Syndrome coronavirus that emerged in 2002-2003, characterized by severe respiratory illness and a significant number of deaths.