The US government can continue to run a deficit as long as lenders are willing to lend money to the government.

Question

Quizplus · Accepted Answer

The US government is able to continue to run a deficit as long as lenders are willing to lend money through the purchase of US government bonds. This creates a cycle of borrowing and lending that allows the government to maintain its spending levels even when revenue does not cover expenses. However, there are limits to how much the government can borrow, and if lenders become unwilling to lend or demand higher interest rates, it can become more difficult for the government to finance its deficit spending.

The US Government Can Continue to Run a Deficit as Long