15. Unlike households, governments are often able to sustain large debts. For example, in September 2007, the
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15. Unlike households, governments are often able to sustain large debts. For example, in September 2007, the U.S. government’s total debt reached $9 trillion, approximately 64% of GDP. At the time, according to the U.S. Treasury, the average interest rate paid by the government on its debt was 5.0%.
However, running budget deficits becomes hard when very large debts are outstanding.
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Related Book For
Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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