Home › CBSE Class 12 (Arts) › Economics › Government Budget and the Economy › Debt owed to foreigners is a real burden because
Debt owed to foreigners is a real burden because
AIt raises export volume
BGoods go abroad as interest
CIt lowers the tax rate
DIt raises domestic prices
Answer & Solution
Correct answer: B. Goods go abroad as interest
Foreign debt needs goods sent abroad against interest payments, unlike internal debt where purchasing power stays in the nation.
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