Question 21 In 2008, the U.S. inflation rate increased unexpectedly. If revenues, expenditures, and nominal interest rates had remained unchanged, as a consequence of this increase: both the U.S real and nominal budget deficits would have increased. only the U.S. real budget deficit would have increased. only the U.S. real budget deficit would have decreased. both the U.S. real and nominal budget deficits would have decreased. 2 points

Question 21
In 2008, the U.S. inflation rate increased unexpectedly. If revenues, expenditures, and nominal interest rates had remained unchanged, as a consequence of this increase:
both the U.S real and nominal budget deficits would have increased.
only the U.S. real budget deficit would have increased.
only the U.S. real budget deficit would have decreased.
both the U.S. real and nominal budget deficits would have decreased.
2 points

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