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Functional Finance
A theory that government budgetary policy should primarily focus on ensuring economic stability and stimulating demand to achieve full employment, rather than solely aiming to balance budgets.
National Debt
The total amount of money that a country's government has borrowed by various means.
Crowding Out
The displacement of interest-sensitive private investment that occurs when higher government deficits drive up market interest rates.
Expansionary Gap
An Expansionary Gap exists when an economy’s output exceeds its potential output, often leading to inflationary pressures.
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