Which of the following is TRUE?
A) Running a deficit-bringing in less than is spent-can be beneficial in the short run as it allows the government to borrow money to help stimulate the economy.
B) Running a deficit-bringing in less than is spent-absorbs money that could be spent in the private sector and thus slows economic growth in the long run.
C) The size of the national debt is one challenge to the continued value of the dollar as an international reserve currency.
D) In 2011, the government will spend about $250 billion in interest on a national debt that is about $14 trillion.
E) All of the above statements are true.
Correct Answer:
Verified
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