Chapter 13, Problem 15P

To determine

Effect on current public debt and government liabilities.

Concept Introduction:

Current Public Debt:

The unpaid short-term debt of the countries, which are the debt of the government and have to be paid by the country in future time is called as public debt.

Implicit Liabilities:

These are the long term government debts which occur because of government borrowings like loans. The growth of the economy is reflected by the implicit liabilities.