burden of the national debtthe extent of the, Managerial Economics

+44 141 628 6080
[email protected]

burden of the national debtthe extent of the

Burden of the national debt

The extent of the burden on a nation of public debt, depends in the first place on whether it is an external or an internal debt. The burden of the national debt to the community can be approximated by the cost of serving it. The cost of servicing the public debt can be calculated:

i. Per head of the population, or

ii. As a percentage of government revenue, or

iii. As a percentage of the national income.

Whichever method used, the National debt shall have the following burden on society:

If higher taxation is required to service a debt which might have disincentive effects resulting in a lower level of output, then this is a burden.

If the debt is held by foreigners, goods will need to be exported to pay the interest and possible repayment of capital. This part of the debt will involve a great burden.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Managerial Economics: burden of the national debtthe extent of the

Reference No:- TGS0177995

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Managerial Economics

Q : economic effects of taxationa a deterrent to

economic effects of taxationa a deterrent to workheavy direct taxation especially when closely linked to current earnings can act as a serious

Q : public expenditurethe accounts of the central

public expenditurethe accounts of the central government are centered on two funds the consolidated fund which handles the revenues form taxation and

Q : types of public debtpublic debts can be

types of public debtpublic debts can be classified according to the purpose for which the money was borrowed

Q : national debttaxation does not often raise

national debttaxation does not often raise sufficient revenue for the government expenditure so governments resort to borrowing this

Q : burden of the national debtthe extent of the

burden of the national debtthe extent of the burden on a nation of public debt depends in the first place on whether it is an external or an internal

Q : public sector borrowing requirement psbrpublic

public sector borrowing requirement psbrpublic sector borrowing requirement psbr is the amount which the government needs to borrow in any one year

Q : monetary policiesthis is the direction of the

monetary policiesthis is the direction of the economy through the variables of money supply and the price of money expanding the supply of money

Q : direct intervention the government can also

direct intervention the government can also intervene directly in the economy to see that its wishes are carried out this can be achieved

Q : policy conflictsin their attempts to achieve the

policy conflictsin their attempts to achieve the policy objectives governments often face what are called conflict of objectives these arise

1926436

Questions
Asked

3,689

Active Tutors

1450853

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Statement about political systems controlled by men

Multiple Choice Question Identify a true statement about political systems controlled by men. Multiple choice question.

What is meant by indigenismo

Question: What is meant by indigenismo (Keywords in Week 2)? What is las cronicas de castas (Cope)?

Which are forms of media bias

Question: Which of the following are forms of media bias? (Select all that apply)

How are schools important in the struggle for power

Question: How are schools important in the struggle for power and status?

Discuss statements about sociological approaches

Question: Which of the following statements about sociological approaches are true?

Cases of local communities using modern technology

Question: Cases of local communities using modern technology to preserve and revive their traditions:

How code of suburbs differs from the code of street

Q1. Explain how the Code of the Suburbs differs from the Code of the Street? Q2. Explain your general thoughts on the book.