Question: Is a high national debt a problem for future economic growth? What is the ideal debt-to-GDP ratio? Government spending increases national debt and can cause

  1. Is a high national debt a problem for future economic growth? What is the ideal debt-to-GDP ratio?
  2. Government spending increases national debt and can cause a crowding-out effect. Explain what the crowding-out effect is and why it's considered a negative effect of increased government spending.
  3. How does an open economy versus a closed economy impact government policy decisions?
  4. Why is the economic indicator "consumer sentiment" relevant for making successful policy decisions?

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