How Long Can the Country Run a Deficit

question 125

Multiple Choice

How long can the country run a deficit?

• A) as long as lenders are willing to finance that deficit at reasonable interest rates
• B) as long as lenders are willing to finance that deficit at high interest rates
• C) as long as borrowers are willing to finance that deficit at reasonable interest rates
• D) as long as borrowers are willing to finance that deficit at high interest rates
• E) as long as debt is risky