Is public debt a burden or a blessing

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  The disadvantage is that government debt imposes a high debt repayment and interest burden on the economy.

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  What is the role of its Public Pension Replacement Rates on its debt burden? This is part of a question that I need to answer for a 4 page paper.

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  a fixed burden.

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  a fixed burden.

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  A high Gini Coefficient can have an adverse effect on demand; the level of public debt indicates how much tax burden will be placed on the people of China. The tax burden will affect economic activity.

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  Answer) The "public debt" or the "national debt", is the amount of money owed by the Government to holders of debt instruments issued by Government.

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  The result is that according to Ricardian equivalence it does not matter whether the government finances its spending with debt or a tax increase, the effect on the total level of demand in the economy will be the same.

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  Since most public debt is linked either to short-term interest rates or to the real's exchange rate, Mr Williamson reckoned that, unless these recovered, the debt burden would continue to rise.

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  In the long term, the deficit will harm the economy because of increasing the national debt burden. A consistent deficit will raise the national debt.