120k views
1 vote
What are advantages of public borrowing​

User MeghaK
by
4.3k points

1 Answer

2 votes

Answer:

The government draws out a lot of money in circulation from the people who have surpluses. It keeps their mounting expenditure to a modest size. Drawing out of purchasing power from the public may help check the inflation

Step-by-step explanation:

Advantages to Investors: Lenders of public debt are also benefiting by it.The various internal sources from which the government borrows include individuals, banks, business firms, and others. A company with a lower credit rating that issues bonds typically will have to pay a higher interest rate to attract investors.

User Kyw
by
4.3k points