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Why would the private sector purchase government debt?

Question

Why would the private sector purchase government debt?

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Step 1

Government debt refers to government selling secuities and other instruments that are used to raise capital and is available in the open market.

Step 2

Private sector would buy government debt such as bonds as these are promissory notes which clearly states that the government would buy them back at a later date. These bonds are issued at a discount right now as the government wants...

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