QUESTION 20 When the government borrows in the market, it can get indemnite કુમાવના materist in the loan. is not required to pay back the entire principle. does not have to pay interest. none of these answer options are correct. all of these answer options are correct.
QUESTION 20 When the government borrows in the market, it can get indemnite કુમાવના materist in the loan. is not required to pay back the entire principle. does not have to pay interest. none of these answer options are correct. all of these answer options are correct.
Chapter1: Making Economics Decisions
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Transcribed Image Text:QUESTION 20
When the government borrows in the market, it
can get indemnite
કુમાવના
materist
in the loan.
is not required to pay back the entire principle.
does not have to pay interest.
none of these answer options are correct.
all of these answer options are correct.
Expert Solution
Step 1
Government borrowing refers to the act of a government raising funds through the issuance of debt securities, such as bonds, bills, and notes. This borrowing is usually done to finance government spending, such as infrastructure projects, social programs, and military operations, among others. The funds raised through government borrowing are typically used to supplement the government's tax revenues, which may not be sufficient to cover all of its expenses.
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