This is an inference question. You can find the answer in the final paragraph, where the author says "Of course, a government could go into debt during the war, but such a strategy simply means that at some point in the future, taxes must be increased or spending decreased. Plus, the interest on the debt must be paid as well."
Choice A is the opposite of what the passage states—going into debt means not only will the government have to deal with the problems associated with increasing taxes or cutting spending, but it must also pay the interest on the debt.
Choice B is a better answer. In the short term, the government doesn’t have the problems associated with the other two solutions, but must face those problems, plus interest payments, in the future.
Choice C goes too far because it is not clear that a government "must" increase taxes. The passage says spending could be decreased.
Choice D makes an extreme and unsupported claim because the author doesn’t say the economy "will not recover" unless certain actions are taken.
Choice E is similar to A and is incorrect based on the information in the passage.