• There is a dispute whether the public debt, causing later cost the economy as follows:◦Large and persistent deficits push up interest rates, reduce investment, and create a burden of indebtedness that is difficult for governments and taxpayers to bear.9◾ Government debt in the case of Public building by a long recovery in the country equals to seize (out Crowd) sources of investment firm in the country, which is the result of doing this may result in interest rate on loanable fund market higher. ◾ Also higher Interest rate affect the ability to pay the debt of the Government as well.
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