The Direct Cost of Public Debt Depends On

question 103

Multiple Choice

The direct cost of public debt depends on:

• A) the interest rate.
• B) enacted fiscal policy.
• C) the implementation lag.
• D) who has purchased Treasury securities.

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Definitions:

Economically Viable

A state or condition in which an activity or entity is capable of generating enough income to cover its expenses, sustainably over time.

User Cost

The cost associated with the use of a product or service, including depreciation, maintenance, and opportunity cost of using the asset over time.

Extracting

The process of removing a resource from the earth, often relating to natural resources like minerals, oil, or gas.

Conservation Cost

The expenses associated with the actions taken to preserve natural resources or to minimize environmental impact.