If the national debt is owned by domestic citizens,
A. the debt will not have to be repaid.
B. future interest payments transfer funds from one group of Americans to another.
C. the debt will have to be repaid first to domestic creditors, then to foreign creditors.
D. future interest payments will go to pay foreign debt first, then debt owed to American citizens.
Answer: B
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A) Basel Accord B) UN Bank Accord C) GATT Accord D) WTO Accord
Assuming an decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant. b. conduct an open market sale of bonds. c. reduce the required ratio. d. both b and c. e. None of the above
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a. $1. b. $1/(1 + 2r). c. $1/(1 – 2r). d. $1/(1 + r)2.
If the government levies a $0.25 tax per MP3 music file downloaded on buyers of MP3 music files, then the price received by sellers of MP3 music files would
a. decrease by more than $0.25. b. decrease by exactly $0.25. c. decrease by less than $0.25. d. increase by an indeterminate amount.