The cost of servicing the debt may increase if
A)The debt shrinks.
B)Deficits become smaller.
C)Interest rates rise.
D)The debt is held internally.

Name: The cost of servicing the debt may increase if A)The debt shrinks. B)Deficits become smaller. C)Interest rates rise. D)The debt is held internally.
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Question

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If interest rates rise, then the cost of servicing the debt will increase because the government will have to pay more in interest payments.

The Cost of Servicing the Debt May Increase If