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Questions
What do you mean by public debt?
What is public debt?
Solution
Public debt refers to the borrowing done by the government to meet its expenditures when traditional sources of revenue, like taxes, are insufficient. Governments borrow from individuals, institutions, and sometimes from foreign sources. In developing or underdeveloped countries, the amount of borrowing is often large due to the need to fund development projects. This can lead to a heavy debt burden, and if borrowing becomes excessive, it can result in a debt trap where the country struggles to repay its debts.
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