debt limit

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Word: Debt Limit

Definition: The "debt limit" is the maximum amount of money that a government (like a country or state) is allowed to borrow. When the government reaches this limit, it cannot borrow more money unless the limit is increased.

Usage Instructions:

• The term "debt limit" is often used in discussions about government finances, budgets, and economic policies.
• It is important in understanding how governments manage their money and how much they can spend compared to what they earn through taxes and other revenues.

Example:

• "The government is approaching its debt limit, which means it needs to decide whether to raise the limit or reduce spending."

Advanced Usage:

• In economic discussions, you might hear phrases like "raising the debt limit" or "debating the debt ceiling," which refer to discussions on whether to allow the government to borrow more money.
• Economists may analyze the impact of the debt limit on a country's credit rating and overall economic stability.

Word Variants:

• Debt Ceiling: This is another term that is often used interchangeably with "debt limit." It also refers to the maximum borrowing capacity.
• Indebtedness: This noun refers to the state of being in debt or owing money.

Different Meanings:

• While "debt limit" specifically refers to government borrowing, the word "debt" itself can refer to money owed by any individual or organization.

Synonyms:

• Borrowing limit
• Credit ceiling

Idioms and Phrasal Verbs:

• "In the red": This idiom means to be in debt or to owe money. For example, "If we keep spending like this, we will be in the red by the end of the year."
• “Go into debt”: This phrasal verb means to borrow money or become financially obligated.

Academic

Noun

1. the maximum borrowing power of a governmental entity

Synonyms

• debt ceiling