How does a government budget deficit affect the economy


Discussion:

Discussion Question 1

What are the potential consequences of a country having a large overall debt? If you were in the position to implement a solution for the country's long-term debt, what would it be and why?

Discussion Question 2

How does a government budget deficit affect the economy? Identify two (or more) periods in recent history in which the United States has run budget deficits. What were the reasons for the deficits during those time periods?

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Microeconomics: How does a government budget deficit affect the economy
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