WEEK THREE DISCUSSION QUESTIONS
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WEEKTHREEDISCUSSIONQUESTIONS.docxWEEK THREE DISCUSSION QUESTIONS
1. Governments are prevented from borrowing unlimited funds through the enforcement of debt limits. Explain the concept of a debt limit. How is the concept of borrowing power or debt margin connected to debt limits? What are the dangers of overlapping debt?
2. Under what circumstances might a government consider an advance refunding of general obligation bonds outstanding? What is arbitrage?
ANSWER EACH QUESTION IN 200 OR MORE WORDS.
USE CITATIONS AND REFERENCES.
