If the government uses a budget surplus to pay off old debt,private sector spending may increase.

Name: If the government uses a budget surplus to pay off old debt,private sector spending may increase.
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When the government uses a budget surplus to pay off old debt, it reduces the amount of debt in the economy and lowers future interest payments. This can increase confidence in the economy and lead to increased private sector spending.

If the Government Uses a Budget Surplus to Pay Off