While the budget deficit represents a ________, the public debt represents a ________

The time lags, which must be either reduced or known with some precision if fiscal policy is to be an effective stabilizing technique, are the lags between

A) the beginning of a cyclical movement and its recognition. B) the decision that compensatory action should be taken and the enactment of tax or expenditure changes. C) the increase or decrease in net government receipts and their final effects on total spending. D) all of the above, because a significant miscalculation with respect to any of these lags could increase aggregate instability.

If a higher inflation is expected, what would you expect to happen to the shape of the yield curve? Why?

What will be an ideal response?