As the size of a nation's outstanding debt gets larger and larger relative to the size of the economy,

a. eventually it will become difficult for the country to borrow in global credit markets.
b. the country will have to pay higher real interest rates in order to induce investors to purchase its bonds.
c. at some point, the country will be more or less forced to bring spending into line with revenues in order to maintain the confidence of investors.
d. all of the above are correct.


D

Economics

You might also like to view...

Indirect utility functions are homogeneous of degree 1 in income.

Answer the following statement true (T) or false (F)

Economics

Using the table above, if the current market value of the dollar is 125 francs

A) investor A holds dollars, but B and C hold francs. B) investor A holds francs, but B and C hold dollars. C) all three investors hold francs. D) all three investors hold dollars.

Economics

Economies of scale occur when

A) a firm's long-run average total costs fall as it increases the quantity of output it produces. B) the marginal product of labor is greater than the average product of labor. C) the demand for a firm's output increases. D) short-run marginal cost falls.

Economics

Short-run total cost is the sum of

a. short-run fixed cost, short-run variable cost, and short-run marginal costs. b. short-run fixed cost and short-run marginal costs. c. short-run variable cost and short-run costs. d. short-run fixed cost and short-run variable cost.

Economics