Which ending is most harmful to an economy?

Please first read the the short section ” Reading on US Debt and Deficit ” in this module. It will review what is the Federal deficit and debt–and what should be done, or not done, about it. Also, listen to the videos I created on the debt.

Then use this fairy tale to analyze the debt.

1. After reading the introduction and the four possible endings, identify each ending by the correct label and explain why that ending is: external debt; crowding out; monetizing the debt; or Keynesian (crowding in).

2. Which ending is most harmful to an economy? Explain why.

3. Using what we have studied in the course, which ending best represents the current situation in the United States? Why?

I attached the fairy tale and US Debt reading in a file.

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