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:

Mutually Beneficial Objectives

Goals or intentions that provide advantages or positive outcomes for all parties involved in a particular situation or agreement.

Policies

Formal guidelines or rules set by an organization to regulate and guide decisions and actions in various scenarios.

Sustainable Procurement

The practice of acquiring goods and services in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organization but also to society and the economy, while minimizing damage to the environment.

Renewable Energy

Energy from sources that are naturally replenishing but flow-limited, like wind, solar, and hydroelectric power.