If the United States continues to run large structural deficits year after year, the government will have to
A) borrow money to finance them.
B) also run a trade deficit.
C) raise interest rates to prevent the deflation that accompanies the deficits.
D) deregulate financial institutions to accommodate the deficits.

Question

Quizplus · Accepted Answer

If the United States continues to run large structural deficits year after year, the government will have to borrow money to finance them. This will result in the accumulation of national debt and interest payments that will need to be repaid in the future, which can have negative impacts on economic growth and stability.

If the United States Continues to Run Large Structural Deficits