What part does interest play in deficit spending? Governments must pay interest on money they borrow when they take on debt. Citizens must pay interest when their governments borrow money. Governments may charge foreign countries interest when they borrow money. Interest is not a factor when a government’s budget is in deficit.

A. Governments must pay interest on money they borrow when they take on debt.

Explanation:

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.