When the federal government borrows money, it can fund higher expenditures in the short term, but incurs
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When the federal government borrows money, it can fund higher expenditures in the short term, but incurs a debt that accrues interest and has to be paid off in the long term. What does this imply about the tradeoff between current and future taxes? How might this tradeoff change if the overall size of the economy grows over time?
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Borrowing moneyin the short term requires the government to pay it back at ...View the full answer
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