There is a long- term burden of government debt in a closed economy when

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In a closed economy, when the government borrows excessively, it will lead to a crowding-out effect, where the government borrows so much that interest rates increase, reducing private investment. As a result, the stock of physical productive capital in the country is reduced, leading to long-term economic growth issues. Therefore, the burden of government debt in a closed economy is mainly in the form of crowding out, reducing long-term economic growth.

There Is a Long- Term Burden of Government Debt in a Closed