ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Reduced Public Investment. As the federal debt mounts, the government will spend more of its budget on interest costs, increasingly crowding out public investments. Over the next 10 years, the Congressional Budget Office (CBO) estimates that interest costs will total $10.5 trillion under current law.

Detailed explanation-2: -The available empirical evidence thus indicates that the level of external debt has an impact on economic growth, which, in turn, is found in many studies to be a key determinant of poverty, Hence, external debt is likely to affect poverty through its impact on economic growth.

Detailed explanation-3: -Debt management is a way to get your debt under control through financial planning and budgeting. The goal of a debt management plan is to use these strategies to help you lower your current debt and move toward eliminating it.

Detailed explanation-4: -This deficit reduction caused lower growth, recession and unemployment. Increasing national debt. A budget deficit increases the level of public sector debt. Large deficits will cause national debt as a % of GDP to increase.