what part does interest play in deficit spending?\ngovernments must pay interest on money they borrow when…
what part does interest play in deficit spending?\ngovernments must pay interest on money they borrow when they take on debt.\ncitizens must pay interest when their governments borrow money.\ngovernments may charge foreign countries interest when they borrow money.\ninterest is not a factor when a governments budget is in deficit.
Answer
Brief Explanations:
When governments have deficit spending, they borrow money. And they are required to pay interest on the borrowed amount as part of the debt - repayment obligation. Citizens don't directly pay interest when the government borrows. Governments don't charge other countries interest in the context of their own deficit spending. Interest is a significant factor in deficit spending.
Answer:
Governments must pay interest on money they borrow when they take on debt.