Discussion 2 Discussion 2

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Between 2007 and 2011 the federal budget deficit grew from $160.7 billion to $1,299.6 billion, and the national debt grew from $8.9 trillion to $14.8 trillion. (Figure 10.1: The ratio of debt to GDP, 1977-2011.) 

In your post, differentiate the budget deficit from the national debt.  How do you think the increases in the budget deficits and the national debt will affect the economy in the future?

 
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