A direct cost of public debt is:
A) the interest the government pays people it has borrowed from.
B) it does not allow the government to be flexible when something unexpected happens.
C) the government often has to borrow from private banks using high-interest loans.
D) All of these are directs costs of public debt.

Question

Quizplus · Accepted Answer

The direct cost of public debt is the interest the government pays to people it has borrowed from. This is because the government must pay back the borrowed funds with interest, increasing the overall debt burden.

A Direct Cost of Public Debt Is