How long will it take the USA and Europe to pay off their massive government debts?

Question:

How long will it take the USA and Europe to pay off their massive government debts?

Debt Financing:

Debt financing refers to the measures that a government or an institution takes to finance its deficit. These measures include:

  1. Taking a loan from other government or financial institutions.
  2. Issuing bonds to the public.

Answer and Explanation:

It's not an easy thing to determine in precise the time frame that both Europe and the USA will take to repay the government debts because the debt keeps on increasing every year to finance the budget deficit. However, with a proper strategy on repayment and reduced borrowing, it may take a much less time frame. Nevertheless, if the rate of borrowing is not reduced then it may take more time to repay these debts.


Learn more about this topic:

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Long-Term Debt: Definition, Cost & Formula

from Financial Accounting: Help and Review

Chapter 8 / Lesson 7
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