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Debt Ceiling Definition
Thursday, October 3, 2:24 PM ET

There exists a limit on the amount of debt the US Treasury is allowed to issue. This is called the Debt Ceiling. The United States debt ceiling keeps the US Treasury from paying expenditures that have previously been incurred. In the event the debt ceiling is reached, legislation needs to be passed to raise the ceiling, or default could occur.

For MarketNewsVideo.com, I'm Sayoko Murase.

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