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Share your experience in the simulation. What strategies did you pursue? Were you successful in reducing the debt? In your opinion, is a high national

  • Share your experience in the simulation. What strategies did you pursue? Were you successful in reducing the debt?
  • In your opinion, is a high national debt a problem for future economic growth? What is the ideal debt-to-GDP ratio? Research academic sources or refer to the information available through the simulation to support your opinion.
  • Government spending increases national debt and can cause a crowding-out effect. Explain what the crowding-out effect is and why it's considered a negative effect of increased government spending. Use information from the textbook to support your analysis.
image text in transcribedimage text in transcribed
DEBT AS PERCENTAGE OF GDP 100% 10% - _ _84% - - - 70% 59% 60% 50% 40% 30% 20% 10% 2034 2050 0%2050 0% Savings relative to current law (billions) $ 12135 Your Savings Defense 90 Investments 375 Social Security 1880 Health Care 1480 Domestic -490 Income Tax 6010 Other Taxes 2790

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