6. U.S. government budget accounting is calculated on the basis of fiscal years. Persistent budget deficits have
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6. U.S. government budget accounting is calculated on the basis of fiscal years. Persistent budget deficits have long -
run consequences because they lead to an increase in public debt. This can be a problem for two reasons. Public debt may crowd out investment spending, which reduces long -run economic growth. And in extreme cases, rising debt may lead to government default, resulting in economic and financial turmoil.
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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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