Question

What part does interest play in deficit spending?

Answer 1

Governments must pay interest on money they borrow when they take on debt.

Step-by-step explanation:

Answer 2

Interest becomes very problematic for the one who is doing the deficit spending over a longer time. Once you're doing deficit spending, you're already using money you've loaned. Im most cases you would be doing this in hopes of increasing this money and paying back this money together with interests. Therefore, the lower the interest rate, the lower the amount of money you're giving back.