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Chris M.
Chris M., M.S.W. Social Work
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In which of the following cases does the size of the governments debt

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In which of the following cases does the size of the government’s
debt and the size of the budget deficit indicate potential
problems for the economy?
a. The government’s debt is relatively low, but the government
is running a large budget deficit as it builds a highspeed
rail system to connect the major cities of the nation.
b. The government’s debt is relatively high due to a recently
ended deficit-financed war, but the government is now
running only a small budget deficit.
c. The government’s debt is relatively low, but the government
is running a budget deficit to finance the interest
payments on the debt.
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