Asked by
Marouane Matrag
on Nov 11, 2024
Verified
The growth-reducing effects of high public debt are transmitted entirely through high real interest rates on that debt.
Real Interest Rates
The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.
- Gain insight into the repercussions of fluctuations in U.S interest rates and public debt on economic activity and government budgeting.
Verified Answer
CC
Learning Objectives
- Gain insight into the repercussions of fluctuations in U.S interest rates and public debt on economic activity and government budgeting.