Macro CH 23
Crowding out effect
The ________________________ is a theory that government borrowing to finance its deficit causes the interest rate to rise. As the interest rate rises, consumption and business investment fall.
National debt
The _________________________ is the dollar amount that the federal government owes holders of government securities. It is the cumulative sum of past deficits.
Crowding in effect
The __________________________ is a theory that Treasury securities resulting from federal deficits increases wealth and consumer spending.
Debt ceiling
The ___________________________ is the legislated legal limit on the national debt.
International national debt
The percentage of the national debt a nation owes to its own citizens is called.
External national debt
______________________________ is a burden because it is the portion of the national debt a nation owes to foreigners. When interest is paid on this type of debt, this income transfers purchasing power to other nations.