TROMBINO, FRANK V.

Federal government budget deficits and federal government
debt have been the cause of controversy and debate in
recent years. Economists have argued over the effects of
government debt and government deficits in the economy. Of
particular interest is the view that associates large
government deficits and government debt to higher rates of
interest and to reduced private investment in the economy.
An alternative view contends that federal budget deficits
and federal debt have no effect on interest rates and
private investment in the economy. Statistical techniques
were used to test both views regarding the effects of
budget deficits.