In any given year,the government's debt-service payments are equal to

Question

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Debt-service payments refer to the interest paid on outstanding government debt. Therefore, the amount of debt-service payments is directly proportional to the total outstanding government debt, which is multiplied by the interest rate to determine the total interest payments. Option A is incorrect because fiscal borrowing is included in the total outstanding government debt. Option B is incorrect because government spending alone is not responsible for determining the debt-service payments, and tax revenue is not considered. Option C is incorrect because it does not include the total outstanding government debt. Option E is incorrect because it includes tax revenue, which is not relevant to determining the amount of interest payments.

In Any Given Year,the Government's Debt-Service Payments Are Equal to