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 these are correct.


d

Economics

You might also like to view...

A voting procedure in which voters initially rank alternatives, the alternative with the fewest first-place votes is eliminated and those votes are transferred to each voter's next-favorite choice,

and the process repeats until a winner emerges, is known as the A) Borda-count method. B) Condorcet method. C) instant runoff method. D) plurality-rule method

Economics

The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. The average total cost (ATC) when 5 barrels of pickles are produced is

A) $22. B) $26. C) $35. D) There is not enough information to answer the question.

Economics

If crowding out exists, contractionary fiscal policy will cause the aggregate demand curve to shift in by more than indicated by the government spending multiplier

a. True b. False Indicate whether the statement is true or false

Economics

Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 6th laborer?

A. 11 cabinets B. 9 cabinets C. 7 cabinets D. 36 cabinets

Economics