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Old 11-17-2004, 07:45 AM   #3 (permalink)
Silvy
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Location: The Netherlands
Quote:
Originally Posted by cokelvr
If there is a national debt how can there be extra dollars?
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.
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