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Guys, I'm just curious how deficits affect things as relevant to the current US economy. Maybe if someone could clarify my thinking, or share their own thoughts. So, I see it as an increasing deficit due to government spending. A big chunk of that comes from military spending right? So for GDP = C+I+G+NX the G increases, so it spurs economic growth in the short run? Please let me know if I made a mistake, it has been a while since I've taken macroecon. However, an increasing deficit is obviously bad in the long run, but how can you explain that in relation to GDP? I'm guessing it affects the exchange rate of the US Dollar too negatively too right?

Thanks ahead of time!
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