A public debt which is owed to foreigners can be burdensome because:

Question

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When a country owes public debt to foreigners, the payment of interest reduces the volume of goods and services available for domestic use. This is because a portion of the country's income must be allocated to servicing the foreign debt, which means that less money is available for domestic programs and investments. This can lead to decreased economic growth, lower living standards, and a higher debt-to-GDP ratio, making it more difficult for the country to pay off its debt in the long run.

A Public Debt Which Is Owed to Foreigners Can Be