Let's assume that your favorite musician (who sells platinum records and has sold-out concerts) is a great cook. He also makes splendid cakes and pies. He could sell the pies and cakes for $30 each. Why doesn't he spend his whole day baking and cooking?

Because the opportunity cost of baking pies will be too high and he can make a lot more from singing and signing record deals

Explanation:

Option A is correct ( Expected inflation does not change the real deficit)

Explanation:

Real deficits are real variable and it is not affected by the change in inflation rate, because inflation is nominal variable. So, nominal value of deficits can be affected, but real value of deficits will remain same.