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7 Cards in this Set
- Front
- Back
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National debt
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The total amount owed by the gederal government to owners of government securities
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Net public debt
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The national debt minus all governemtn interagency borrowing
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Debt ceiling
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A legislated legal limit on the national debt
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Internal national debt
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The portion of the national debt owed to a nation's own citizens
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External national debt
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The portion of th enational debt to foreign citizens
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Crowding-out effect
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A reduction in private-sector spending as a reslut of federal budget deficits financed by U.S. treasury borrowing When federal government borrowing increases interest reates, the reslut, is lower consumption by households and lower investment spending by businesses
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Crowding-in effect
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An increase in private-sector spending as a result of federal budget deficits financed by U.S Treasury borrowing. At less than full employment, consumers holds more Treasury securities, and this additional wealth causes them to spend more. Businesses, investment spending increases because of optimistic profit expectations
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