This topic contains a solution. Click here to go to the answer

Author Question: Increases in the fraction of national debt held by foreigners _____ the burden of debt service on ... (Read 122 times)

lracut11

  • Hero Member
  • *****
  • Posts: 536
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



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

InfiniteSteez

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

d

Answer to Question 2

e




lracut11

  • Member
  • Posts: 536
Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review


ricroger

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

For a complete list of videos, visit our video library