Net interest payments by the government are usually
A)small and sometimes negative for both the federal, and state and local governments.
B)small and sometimes negative for the federal government, but large and positive for state and local governments.
C)small and sometimes negative for state and local governments, but large and positive for the federal government.
D)large and positive for both the federal, and state and local governments.

Question

Quizplus · Accepted Answer

Net interest payments are typically small or sometimes negative for state and local governments due to various financing mechanisms and restrictions on borrowing. However, for the federal government, these payments are large and positive, reflecting the substantial national debt and the interest that accrues on it.

Net Interest Payments by the Government Are Usually