Purchase Solution

National Debt

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

The solution discusses national debt.

Solution Preview

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 ...

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Project Planning, Execution and Closure.

    In 2008, the national debt is recorded as $9.6 trillion (U.S. National debt clock, 2008).

  • U.S. national debt

    Social security support; This answer provides you an excellent discussion on U.S. national debt

  • Explaining the National Debt and Budget Deficits

    409954 Explaining the National Debt A) Assume that the gross national debt initially is equal to $3 trillion and the federal goverment then runs a deficit of $300 billion. 1) What is the new level of gross national debt?

  • Deficits and debt

    643301 The National Debt Try the following exercises to better understand how the national debt is related to the government's budget deficit. a.

  • national debt is

    127790 Annual interest payments on national debt and the affect on GDP We are studying the national debit and I am not sure about the link between the national debt, interest payments on the debt and the GDP.

  • National Enterprises

    270038 Calculate WACC for National Enterprises National Enterprises provides the following information: Capital Structure Percentage Pre-Tax Cost Debt 40% 5.5% Preferred

  • The Value of ScientificNotation

    Suppose you wanted to know the national debt to the nearest dollar. In ordinary notation this would be $16,605,953,078,109.12 as of Feb. 23, 2013, 09:33:51 PM GMT, according to the U.S. National Debt Clock [1].

  • Challenges for America: The Ever-Increasing Budget Deficit

    512935 Challenges for America: The Ever-Increasing Budget Deficit Budget Deficit, National Debt, and Government Spending: Is Now the Right Time to Cut Deficit and Reduce National Debt?

  • national debt's burden to future generations

    156056 National Debt's Burden to Future Generations Will the national debt be a burden to future generations? Please support your answer. Governments don't have pay back debts the way individuals do.

View More Related Solutions