Because the government has so much money, and can print more, it does not need to borrow and therefore rarely pays net interest on debt.

Question

Quizplus · Accepted Answer

This statement is false. Though the government can print money, excessive printing may lead to inflation. To avoid this, the government often borrows money by issuing Treasury bonds, which accrue interest and create a national debt. The government then pays interest on these bonds, although the interest rate is typically low due to the government's ability to repay.

Because the Government Has So Much Money, and Can Print