### Illustrate what happens to amount of debt held by public

##### Reference no: EM1367477

Q. Assume that gross national debt initially is equal to 3 trillion and federal government n runs a deficit of \$300 billion: Illustrate what is new level of gross national debt? If 100 % of deficit is financed by sale of securities to federal agencies, illustrate what happens to amount of debt held by public? Illustrate what happens to level of gross debt?

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