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EC251

Macroeconomics 3

QuestionAnswer
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
Created by: brsoul1
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