extent of 7%, calculate the real deficit in that country. Show your calculations.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter12: Federal Budgets And Public Policy
Section: Chapter Questions
Problem 4.10P
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(b) Assume a country's nominal deficit is $14 billion and its
debt is $29 billion. If the inflation in the country is at an
extent of 7%, calculate the real deficit in that country. Show
your calculations.
Transcribed Image Text:(b) Assume a country's nominal deficit is $14 billion and its debt is $29 billion. If the inflation in the country is at an extent of 7%, calculate the real deficit in that country. Show your calculations.
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