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2 Responses to “Do these cases of government debt and budget deficit indicate potential problems for the economy?”
By Dennis on Aug 7, 2008 | Reply
Well, the first two indicate government spending which circulates money in the economy leading to a higher GDP. The third one indicates a deficit not due to government spending. The third one would have more of an impact on the economy so I would say the third one would indicate what you had asked.
By Smitty2007 on Aug 10, 2008 | Reply
the third seems most likely because of the risk implication, as the gov is using a budget deficit to finance interest.