what part does interest play in deficit spending?\no governments must pay interest on money they borrow when…

what part does interest play in deficit spending?\no governments must pay interest on money they borrow when they take on debt.\no citizens must pay interest when their governments borrow money.\no governments may charge foreign countries interest when they borrow money.\no interest is not a factor when a governments budget is in deficit.

what part does interest play in deficit spending?\no governments must pay interest on money they borrow when they take on debt.\no citizens must pay interest when their governments borrow money.\no governments may charge foreign countries interest when they borrow money.\no interest is not a factor when a governments budget is in deficit.

Answer

Brief Explanations:

When governments borrow money to cover deficit spending, they incur debt and must pay interest on that borrowed money. Citizens don't directly pay interest when government borrows. Governments are borrowers in this context, not lenders to foreign countries in relation to their own deficit - spending debt. And interest is a significant factor in deficit spending.

Answer:

Governments must pay interest on money they borrow when they take on debt.