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
d
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A lump-sum tax, such as a $1000 tax that every family must pay one time, is
A) negatively related to real GDP. B) an autonomous tax. C) a regressive tax. D) a type of income tax.
In short-run equilibrium in a perfectly competitive market,
a. each firm earns an economic profit b. each firm earns a normal profit c. firms shut down if price exceeds average total cost d. each firm takes consumers' marginal utility as given e. peach firm takes the market price as given