Answers 26-27 Ignite Economics-KY-Economics Entrepreneurship — Unit testQuestion 10

10

QuizMultiple Choice

Entrepreneurship — Unit test

Question 10 of 12 • 26-27 Ignite Economics-KY-Economics

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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