I 1. is a high national debt a problem for future economic growth? What is the ideal debt-to-GDP ratio?

2.Explain what the crowding-out effect is and why its considered a negative effect of increased government spending

Debt as Percentage of GDP 100% 85% 90% 80% 70% 59% 60% 50% 40% 30% 20% 10% 2031 2050 0% Savings relative to current law (billions) $ 9310 Your Savings Defense 2190 Investments 610 Social Security 1530 Health Care -2060 Domestic 690 Income Tax 2130 Other Taxes 4220 Debt as Percentage of GDP 100% 85% 90% 80% 70% 59% 60% 50% 40% 30% 20% 10% 2031 2050 0% Savings relative to current law (billions) $ 9310 Your Savings Defense 2190 Investments 610 Social Security 1530 Health Care -2060 Domestic 690 Income Tax 2130 Other Taxes 4220