The direct cost of debt depends on:

Name: The direct cost of debt depends on:
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The direct cost of debt is primarily dependent on the interest rate. High interest rates generally result in higher costs for the borrower, while lower interest rates result in lower costs. Fiscal policy, implementation lag, and the amount of the deficit may indirectly impact interest rates, but they are not direct determinants of the cost of debt.

The Direct Cost of Debt Depends On