Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following statements about deficits and debt is true? (1 point) If the government run a fiscal surplus, it will increase its external

Which of the following statements about deficits and debt is true? (1 point) If the government run a fiscal surplus, it will increase its external debt. Interest payments on the national debt can limit other spending options that the government might have. Government represents the sum of all borrowing by banks from the central bank, minus any repayments. When economy-wide interest rates increase, the value of outstanding debt increases. In most developed countries, foreigners are prohibited from owning the country's bonds or debt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics

Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

18th edition

978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694

More Books

Students also viewed these Economics questions

Question

7. What is a brand mark? Identify examples of brand marks.

Answered: 1 week ago

Question

Finance Calculations: 1. ? 2. ? 3. ?

Answered: 1 week ago