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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.