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 government’s budget is in deficit.
Answer
Brief Explanations:
When governments have deficit spending, they borrow money. Just like any borrower, they must pay interest on the borrowed funds. Citizens don't directly pay the interest on government - borrowed money in the sense described in the option. Governments don't charge other countries interest when they themselves borrow, and interest is definitely a factor in deficit spending.
Answer:
Governments must pay interest on money they borrow when they take on debt.