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Inflation is 12 percent. Debt is $2 trillion. The nominal deficit is $300 billion. Is there a real deficit or a real surplus and what is the amount? A. There is a real deficit of $540 billion B. There is a real surplus of $540 billion. ° C. There is a real surplus of $60 billion O D. There is a real deficit of $60 billion.

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Answer #1

Answer D Real Deficit is $60 billion

Explanation: Real Deficit formula= Nominal deficit - (Rate of inflation x Total debt)

= $300 billion-(12/100x$2 trillion)

=$300 billion -$240 billion

= $60 billion

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