The larger the amount of outstanding national debt: the lower the tax revenue the government must collect. O the smaller the crowding out of private investment spending. O the more spending the government can afford. the larger the fraction of the federal budget that must be devoted to interest payments.

The larger the amount of outstanding national debt: the lower the tax revenue the government must collect. O the smaller the crowding out of private investment spending. O the more spending the government can afford. the larger the fraction of the federal budget that must be devoted to interest payments.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 51P: A government starts off with a total debt of $3.5 billion. In year one, the government runs a...

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