Quote:
Originally Posted by cokelvr
If there is a national debt how can there be extra dollars?
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If I'm not mistaken, take this example:
Say you need 10 dollars for your lunch. That is then your budget.
You have 5 dollars of your own, and you borrow 5 from me. That makes that you have a debt of 5 dollars.
But after lunch you realize you only spent 8 dollars. So you have a surplus of 2 dollars.
Budget = 10
Debt = 5
surplus = 2
You could repay part of the loan, or you can invest those two dollars in something else. Consider the loan long-term, low-interest.