Question

If government issue more debt then interest rate will?

Answer 1

Explanation:

For any given year, the federal budget deficit is the amount of money the federal government spends (also known as outlays) minus the amount of money it collects from taxes (also known as revenues). If the government collects more revenue than it spends in a given year, the result is a surplus rather than a deficit.

Answer 2

Answer:

As borrowing increases, the government have to pay higher interest rate payments to those who hold bonds (lend government money).In some circumstances, higher borrowing can push up interest rates because markets are nervous about governments ability to repay