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Advantages and disadvantages to borrowing

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Critical Thinking: The federal government is operating at a huge annual budget deficit, spending much more than it is receiving in tax revenue. The extra money must be borrowed, as of the Summer of 2013, about 35 cents on every dollar spent. From whom is the government borrowing about a trillion dollars a year? What are the advantages and disadvantages to borrowing this much money? What if we can't pay it back? What happens if lenders lose confidence in the US government and are no longer willing to lend?

Reference no: EM132456527

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