Refunding the debt refers to
a. selling new bonds to raise money to pay off maturing bonds.
b. raising taxes to lower the national debt ceiling.
c. raising the debt ceiling to allow the government to issue more debt.
d. Fed purchases of government bonds in the open market.
a. selling new bonds to raise money to pay off maturing bonds.
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Admission to the Euro required in 1997 that a country's government debt not exceed ________ percent of GDP
A) seven B) fifteen C) twenty-five D) sixty
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. The GDP Price Index rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The GDP Price Index falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The GDP Price Index and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.