Friday, March 12, 2010

How does the debt & deficit affect the national budget?

I couldn't find a direct answer to this question on the internet, and wanted to know if anyone could help me out. How does the national debt and deficit affect the national budget. And also how does the national debt effect inflation.


Thank you

How does the debt %26amp; deficit affect the national budget?
it affects the national budget because the government has to pay money to banks or other nations it borrowed from. in the same way a person barrows money to get out of a bad financial situation the government has to do the same they could always print more money but that would skyrocket inflation and decrease the value of the dollar severely hurting the economy.


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