How does the debt & deficit affect the national budget?

October 24th, 2011 | by admin |
jonnytempest asked:


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

  1. One Response to “How does the debt & deficit affect the national budget?”

  2. By Aaron on Oct 24, 2011 | Reply

    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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