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EC251
Macroeconomics 3
Question | Answer |
---|---|
Treasury bonds | Promissory notes issued by the USA gov |
National debt | Accumulated debt of the fed government |
Liability | An obligation to make future payments of debt |
Assets | Anything exchanged that has value in the market place |
Internal debt | US gov debt held by us household institutions |
External debt | Us gov debt held by foreing institution |
Refinancing | The issuance of new debt for payment of debt issued earlier |
Debt servicing | The interest required to be paid each year on outstanding debt |
Crowding out | A reduction in borrowing from the private sector and spending caused by gov borrowing |
Debt ceiling | A legislative limitation on the size of the budged deficit |
Deficit ceiling | A legislative limit on the amount of outstanding national debt |
How to figure out the multiplier | 1 divide by 1 minus mpc = multiplier value |