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Many nations have a national debt. When the debt is too large, small countries with a bad credit rating will find it difficult to borrow funds. In the case of the US, the national debt is very high. This is troubling, however, the US has a solid record of always paying its debts when due. That means it has no problems at all in selling Treasury securities, as one example. Still, its better to decrease the national debt. Most solutions to this problem that are reasonable are to raise taxes and cut down spending. This will work to slowly decrease the debt. A very reasonable goal.
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∙ 8y ago
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How does increasing the GDP help a country?
It helps as it stops our country from being in debt so the higher the Gross Domestic Product (GDP) the lower chance of this country being in debt :)
How can national debt be elimined?
By balancing the budget. This can be done by increasing government income (raising taxes) and decreasing government expenditure.
What financial situation made Latin American nations particularly vulnerable to forceful takeover?
Huge foreign debt.
How does the federal reserve monetize debt?
The FED monetizes debt by printing money. Then using that money to purchase government bonds. The bonds are sold as a method of covering deficit. The problem lies in the fact that when this happens it causes Aggregate Demand to increase and results in inflation. If the government continually does this, it traps the monetary system into a spiral of increasing inflation and increasing unemployment.
European nations have experienced a debt crisis what caused the crisis?
During times of economic prosperity, some nations borrowed more money than they can pay back now in times of economic hardship.
Following the Spanish-American War nations in the Caribbean and Central America were deeply in debt to?
European nations
Why did nations form alliances with other nations?
they probably owed them debt or helped them out of debt.
Is the US in debt?
Yes, currently the USA is in debt and the debt is increasing daily.
Why did people oppose New Deal?
Because they thought that it would increase the debt
What is present when there is a build up of charge?
Increasing debt.
How much was Serbia's debt after World War 1 and did they ever pay it?
All countries involved in World War 1 had huge debt following the war. Te exact amount that Serbia borrowed is unknown, but debt was something that all nations involved had to deal with and it was worked out in the Treaty of Versailles.
How did Alexander Hamilton propose to deal with the problem of 12 million of debt the US borrowed from the foreign nations during the revolutionary war?
issue new bonds and guarantee payment
How many days to pay off nations debt at a 100 dollars a second?
how many days to pay nations debt at 100 dollars a second
Who would a person visit to become debt free?
There are many services a person could seek out in order to become debt free. For instance, personal finance managers and investment bankers can help a person deal with debt.
Where can I learn about debt loans for credit cards?
When one is that deep in debt, one really should find a way to reduce debt without adding to it. Increasing debt to survive is not a way to reduce debt.
Will gambling addiction rehab help me deal with my debt as well?
Gambling addiction rehab is stricly for helping you deal with your addiction. The rehab may guide you in the right direction to help you deal with your debt.
What were the impact of the purchase?
the government was mad because the national debt and it was increasing
