Multiple Answer
Consider the difference between the conventionally reported budget deficit, and the budget deficit adjusted for inflation. Select the statements below that are true.
Group of answer choices
The inflation-adjusted budget deficit only includes government spending to service the debt owned by foreigners
The inflation-adjusted budget deficit systematically accounts for changes in government spending related to the business cycle
The inflation-adjusted budget deficit considers changes in the value of capital assets owned by the government
In an environment of deflation, the conventionally reported budget deficit will be lower than the inflation-adjusted budget deficit
The conventionally reported budget deficit reflects the impact of uncounted liabilities on government debt, whereas the inflation-adjusted budget deficit does not
In an environment of positive inflation, the conventionally reported budget deficit will be greater than the inflation-adjusted budget deficit
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