In this table, showing U.S. federal spending for 2007, interest on the debt refers to
A) interest paid to owners of government debt held by the public.
B) interest charged by the U.S. government for U.S. foreign aid to other countries.
C) spending by the U.S. government on education and highways.
D) interest charged by the U.S. government on loans to states for education programs.

Question

In this table, showing U.S. federal spending for 2007, interest on the debt refers to
A) interest paid to owners of government debt held by the public. 
B) interest charged by the U.S. government for U.S. foreign aid to other countries. 
C) spending by the U.S. government on education and highways. 
D) interest charged by the U.S. government on loans to states for education programs.

Quizplus · Accepted Answer

Interest on the debt refers to the interest paid by the U.S. government to owners of government debt held by the public. This includes the interest paid on Treasury bonds, notes, and bills held by individuals, banks, and foreign governments.

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