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Money borrowed to pay the national deficit later becomes

A. budget deficit.
B. hyperinflation.
C. treasury bonds.
D. the national debt.

1 Answer

4 votes
The correct answer is letter D. the national debt. Money borrowed to pay the national deficit later becomes the national debt. The borrowed money are mostly came from the IMF (International Monetary Fund) or from the World Bank. The nation has the capacity to borrow given that they can able to pay according to its capacity.
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User Zach Burlingame
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