Increases in the fraction of national debt held by foreigners ...

[lracut11]

Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____.
 a. decrease; because it is easier for the borrowing nation to default on the debt
 b. decrease; but may make the country more vulnerable to foreign intervention
 c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically
  d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside
  e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out

Question 2

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent, the expected real interest rate is _____.
 a. 13 percent
 b. 5 percent
 c. 9 percent
 d. 13 percent
  e. 5 percent

[InfiniteSteez]

Answer to Question 1

d

Answer to Question 2

e

[lracut11]

TYSM

[Mochi]

Gracias!