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  1. #1
    david11's Avatar
    david11 is offline Senior Member
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    Default debt as expenditures.

    The meaning of 'deficit' differs from that of 'debt', which is an accumulation of yearly deficits. Deficits occur when a government's expenditures exceed the revenue that it generates. The deficit can be measured with or without including the interest payments on the debt as expenditures.


    What does
    debt as expenditure mean in the above sentence?


    How can debt be taken as expenditure?

  2. #2
    susiedq is offline Member
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    Default Re: debt as expenditures.

    Quote Originally Posted by david11 View Post
    The meaning of 'deficit' differs from that of 'debt', which is an accumulation of yearly deficits. Deficits occur when a government's expenditures exceed the revenue that it generates. The deficit can be measured with or without including the interest payments on the debt as expenditures.


    What does
    debt as expenditure mean in the above sentence?


    How can debt be taken as expenditure?
    There is debt and there is interest on that debt. For example, if you owe someone $10, there may be a charge (interest) that you also must pay in order to borrow that money. So you may owe $13 dollars. That additional $3 would be considered an expenditure (cost) of having the debt.



  3. #3
    SoothingDave is offline VIP Member
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    Default Re: debt as expenditures.

    Quote Originally Posted by david11 View Post
    The meaning of 'deficit' differs from that of 'debt', which is an accumulation of yearly deficits. Deficits occur when a government's expenditures exceed the revenue that it generates. The deficit can be measured with or without including the interest payments on the debt as expenditures.


    What does
    debt as expenditure mean in the above sentence?


    How can debt be taken as expenditure?
    You're reading the phrase wrong. It's "interest payments ... as expenditures."

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