Week 4 Reflection

ECO/372 Principals of Macroeconomics

Week 4 Reflection

Monitoring the national debt has always made people uneasy and trying to understand what the debt really means has come into question. The general belief is that the debt is something to worry about and that the country could crash into turmoil and would mean the fall of the economic system within the country. This is not always the case the country has been functioning with a debt for the majority of the time since the 1950s. The country is not in trouble because of the debt in fact many times the country is stronger when it has debt (Colander, 2010). As long as the country keeps it GDP to debt ratio below the 100% margin the country will still be able to function at this time the ratio is at 75%...