Because the government must pay interest on the public debt,its ability to balance the budget or fund public sector activities is reduced.

Question

Quizplus · Accepted Answer

When the government has to pay interest on the public debt, it means that a portion of its budget is going towards servicing the debt rather than funding public sector activities or balancing the budget. This reduces the government's ability to allocate funds towards other priorities.

Because the Government Must Pay Interest on the Public Debt,its