Concept
Version 6
Created by Boundless
Problems of Long-Run Government Debt
Government debt
Publicly issued debt is one means governments use to fund expansionary fiscal policy. The problem with debt is that it needs to be paid off with future revenues, which curtails future government spending.
Source
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"Statue of Liberty 1917 poster."
http://commons.wikimedia.org/wiki/File:Statue_of_Liberty_1917_poster.jpg
Wikimedia
Public domain.