In which of the cases does size of governments debt deficit


Problem

In which of the following cases does the size of the government's debt and the size of the budget deficit indicate potential problems for the economy?

a. The government's debt is relatively low, but the government is running a large budget deficit as it builds a high-speed rail system to connect the major cities of the nation.

b. The government's debt is relatively high due to a recently ended deficit-financed war, but the government is now running only a small budget deficit.

c. The government's debt is relatively low, but the government is running a budget deficit to finance the interest payments on the debt.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: In which of the cases does size of governments debt deficit
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