How does debt affect an economy

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well dim can affect an economy depending on the type of debt that is being acquired whether external or internal.
au large death can affect an excellent deal the distribution of income in a particular country if the date is how this can be greased a distribution or circulation of income in a particular nation or country.
when the government acquires too much debt it makes it difficult for the government to provide for the masses both social and economically. cbc's by the government to the people who do like him as well due to the acquiring of large debt.

with a country acquires too much debt the investment rates in the private sector will be limited. on capital goods

sometimes when a government find it hard in repairing and financing their debt this can reduce the foreign exchange in a country and also the value of the country's currency will be hindered or limited.

and also due to the acquiring of large amount of debt this can scare away investors for the country to invest in such a country. and where there is no investment the standard or cost of living in such country will be high.
So therefore government should regulate the kind of debt they are aquire so that it won't affect them in the future
 
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