After 1996, interest payments began falling because of _____
A) budget surpluses and lower interest rates.
B) budget deficits and lower interest rates.
C) budget surpluses and higher interest rates.
D) budget deficits and higher interest rates.
E) defaults of foreign debt.

Question

Quizplus · Accepted Answer

Budget surpluses mean the government is not borrowing as much, which reduces the need for interest payments. Lower interest rates make those payments cheaper. Both factors together lead to a reduction in interest payments.

After 1996, Interest Payments Began Falling Because of _____