Question

Describe the economic effects associated with a government using bills or bonds to borrow from overseas

Answer 1

Answer:

Potential problems of high government borrowing. Higher debt interest payments. As borrowing increases, the government have to pay more interest rate payments on those who hold bonds. This can lead to a greater percentage of tax revenue going to debt interest payments.A

Answer 2

Answer:

Potential problems of high government borrowing. Higher debt interest payments. As borrowing increases, the government have to pay more interest rate payments on those who hold bonds. This can lead to a greater percentage of tax revenue going to debt interest payments.

Explanation:

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