Questions asked
Nick Johnson
Numerade educator
Assume the government finances a spending increase by issuing new securities. Does this create a burden on future generations? Why or why not? Would it make a difference whether the spending increase was used to finance the building of a new highway or to send troops abroad to fight a war in another country?.
James Kiss
If the government managed to reduce the budget deficit and eventually achieved a budget surplus, what would be the effects on interest rates, national saving, and future living standards?