Explain what happens to the level of gross debt

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Reference no: EM13209737

The National Debt Try the following exercises to better understand how the national debt is related to the government's budget deficit
Assume that the gross national debt is initially equal to $3 trillion and the federal government then runs a deficit of $300 billion
If 100 % of then deficit is financed by the sale of securities to federal agencies, what happens to the amount of debt held by the public? What happens to the level of gross debt?

Reference no: EM13209737

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