A sovereign government does not have to issue debt to finance its spending. But the more public debt it voluntarily issues

the less is the volume of investment funds in the non-government sector that can be used for other investments.
the more difficult it is for banks to attract deposits to initiate loans from.
the greater is non-government wealth held in the form of public debt.

Answer: the greater is non-government wealth held in the form of public debt.

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