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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Definitions:

Finance Company

A business that provides loans to individuals or corporations, often specializing in certain types of lending like consumer credit or auto financing.

A-One Landscapers

An example name, likely referring to a hypothetical or real landscaping business characterized by top-notch or premier services.

Office Park

A collection of office buildings situated on a large plot of land, typically offering a range of facilities and services for the businesses operating within.

Rights Vested

Refers to rights that are securely granted to an individual or entity, and cannot be revoked or amended without consent.