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What type of debt is characterized by loans that generate revenue for the government?
  • a)
    Compulsory debt
  • b)
    Unproductive debt
  • c)
    Irredeemable debt
  • d)
    Productive debt
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What type of debt is characterized by loans that generate revenue for ...
Productive debt is associated with loans taken for projects that have the potential to generate revenue, such as infrastructure initiatives. These loans are considered self-liquidating because the revenue generated from the projects helps pay back the principal and interest. This form of debt is beneficial for economic growth.
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