Inflation Accounting for the Debt Argues the Following

question 210

Multiple Choice

Inflation accounting for the debt argues the following:

• A)The change in the value of the debt when inflation occurs complicates income tax codes, and is the reason for the tax changes of 2003.
• B)The portion of interest payments that compensate lenders for inflation should be considered repayment of debt rather than interest expense.
• C)The debt represents an inflationary problem, and grows more rapidly when people fear inflation.
• D)The portion of the deficit dedicated to repayment of interest on the debt should not be considered part of the deficit, because it is a transfer.

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Definitions:

Shallower Level

A term that could refer to understanding or processing something at a more superficial or less complex level.

Maintenance Rehearsal

A cognitive strategy that involves repetitively reviewing information to retain it in short-term memory.

Repeating

The act of saying, writing, or doing something again, often for emphasis or to ensure understanding.

Short-term Memories

Refers to the part of the memory system that holds information for a brief period, typically seconds to minutes.