Conventional Budget Accounting Practices Tend to Overstate Deficits in Inflationary

question 171

Multiple Choice

Conventional budget accounting practices tend to overstate deficits in inflationary periods because they

• A)ignore the inflation tax.
• B)confuse repayment of principal with real interest expenditures.
• C)double count some expenditures.
• D)understate real interest rates.

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