Question

Explain what is meant by national debt.

state one reason why the national debt is a burden to a country

Answer 1

Explanation:

National debt meant to be the the debt which central government has owed from other intragovernmental or from public in form of government bond etc., National debt is of whole national government's debt which they have gained from its citizens or foreign investors or foreign governments. National debt is created when government spend more than it revenue in financial year.

- Government have to repay that debt by either borrowing fund from another source which also create another debt or it will repay it will increasing tax rate or cutting spending on government expenditures which can cause slow growth of economy. Longer the time to repay the debt higher the interest government have to pay to those lenders.