A large and persistent fiscal deficit can lead to

a fall in the government's debtCorrect answerYour answera rising debt burden and growing interest paymentsCorrect answerYour answerlower interest paymentsCorrect answerYour answera revenue surplusCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Each year's deficit adds to debt, and more debt means more interest, which raises next year's deficit.

Concept: Deficits and debt
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsWhat deficits do

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A large and persistent fiscal deficit can lead to

Explanation