If the United States Continues to Run Large Structural Deficits

question 42

Multiple Choice

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.

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