16. Which of the following statements is (are) correct? I. If the current inflation rate is positive, the inflation-adjusted government budget deficit will be smaller than the nominal government budget deficit. II. Under the capital budgeting, if the Government pays off its debt by selling an infrastructure it owns, it will not affect the government budget deficit. Answer: ________ a) None of the above. b) I only. c) II only. d) Both I and II.

16. Which of the following statements is (are) correct? I. If the current inflation rate is positive, the inflation-adjusted government budget deficit will be smaller than the nominal government budget deficit. II. Under the capital budgeting, if the Government pays off its debt by selling an infrastructure it owns, it will not affect the government budget deficit. Answer: ________ a) None of the above. b) I only. c) II only. d) Both I and II.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Federal Budgets And Public Policy

Section: Chapter Questions

Problem 4.9P

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