A government increases its internal debt for all of the following reasons EXCEPT ________.

Question

Quizplus · Accepted Answer

Internal debt refers to the amount of money a government borrows from its own citizens or institutions within the country. Option A and option B both suggest that the government is spending more than it is earning through taxes, which would result in an increase in internal debt. Option D implies that the government may have to bail out state-owned enterprises, which could also contribute to an increase in internal debt. However, option C suggests that the government is borrowing money from international financial institutions, which is not considered internal debt.

A Government Increases Its Internal Debt for All of the Following