Answer to Question #194346 in Macroeconomics for badam

Question

 If the public debt is a debt that we owe to ourselves, then there are obviously no problems connected with such as debt.” Critically evaluate the statement. 

Answer 1

High and rising federal debt, however, decreases the ability to do so. Greater Risk of a Fiscal Crisis. If the debt continues to climb, at some point investors will lose confidence in the government's ability to pay back borrowed funds.