How long will it take the USA and Europe to pay off their massive government debts?
Debt financing refers to the measures that a government or an institution takes to finance its deficit. These measures include:
- Taking a loan from other government or financial institutions.
- 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.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Financial Accounting: Help and ReviewChapter 8 / Lesson 7