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    National Debt

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    Discuss with your classmates the impact of the national debt on the American economy. Use the principles and concepts you have learned in this macroeconomics class. Remember that we measure the economy by the equation C + I + G + X = GDP. So think about how the government actually borrows money. Review the graphs that show what happens to bond prices, the interest rate, etc. Just stating that you think the national debt is a bad thing or doesn't matter will not earn you the potential 10 points. Your conclusions have to be supported, and correctly so, by the principles and concepts you have learned in this class.

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    National Debt can be good or bad. It depends on the situation. There are two ways that government can borrow money to fund its deficit. It can either raise taxes and generate more revenue that way or it can issue more bonds. There is only so much that it can do to ...

    Solution Summary

    The solution discusses national debt.