Suppose the national debt of a country is currently $400 billion dollar and the national nominaldeficit for the country is $50 billion. Inflation rate has been 5%.What is the real deficit?Suppose that part of the $50 billion deficit came from the government buying $ 10 billion ofnatural resources to store for future use. What would the nominal deficit be under capitalbudgeting?8)a)b)

Net Deficit is defined as the accumulation of the governments annual budget deficits. Nominal…

Answered: Suppose the national debt of a country…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter17: Federal Deficits, Surpluses, And The National Debt

Section: Chapter Questions

Problem 7SQP

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Suppose the national debt of a country is currently $400 billion dollar and the national nominal deficit for the country is $50 billion. Inflation rate has been 5%. What is the real deficit?