Answers OC27 Economics-2102310-Sem-Meadows Unit 4 TestQuestion 2

2

QuizMultiple Choice

Unit 4 Test

Question 2 • (OC27) Economics-2102310-Sem-Meadows

What part does interest play in deficit spending?

Answer

A

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

B

Citizens must pay interest when their governments borrow money.

C

Governments may charge foreign countries interest when they borrow money.

D

Interest is not a factor when a government’s budget is in deficit.

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