Which of the following is true about the national debt: A. The debt can continue to...
| A. |
The debt can
continue to safely grow indefinitely as long as the nation's income
grows at least as fast as total interest payments.
|
|
| B. |
The debt can safely
grow as long as interest rates are falling.
|
|
| C. |
The debt can safely
grow as long as the government can print money.
|
|
| D. |
The debt cannot
safely grow indefinitely.
|
Homework Answers
When national debt is to be considered, it is better to see it as a ratio of the country's GDP. Even if the national debt is growing, it is possible that the debt to GDP ratio is not increasing. This happens because the GDP is also growing simultaneously along with the national debt. If the GDP grows at least as fast as the debt, the debt to GDP ratio is either constant or decreasing. The correct option is A.
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Which of the following is true about the national debt:
A.
The debt can
continue to...
which of these statements is true about the us national debt? two thirds of the debt...
which of these statements is true about the us
national debt? two thirds of the debt is held domestically
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Which of the following statements is true? - The size of the national debt is not...
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Which of the following is true about a strict Currency board system? Multiple Choice ) The...
Which of the following is true about a strict Currency board system? Multiple Choice ) The currency board system enhances the ability of the government to print money Ο The government lacks the ability to set interest rates C ) A currency board system is govemed by the market forces of demand and supply C ) A currency boud cannot issue additional domestic notes and coins despite the presence of foreign exchange reserves to back Ο A currency board system...
1.) Which of the following is an example of a timing problem with enacting fiscal policy?...
1.) Which of the following is an example of a timing problem with enacting fiscal policy? Since most people increasing their savings when their income rises, the tax multiplier is likely to be smaller than originally thought. Once the government increases spending, it is difficult to decrease spending in the future Democrats want to pass a spending bill, but Republicans do not. They argue for months in the House of Representatives prior to a modified bill being passed. the Federal...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for exports, S for saving, NT for net taxes (taxes minus transfer payments), and IM for imports. Consider the following identity and answer the questions that follow. I+ G+X = S+ NT + IM Which of the following best characterizes the above identity? The total amount of leakages from the nation's flow of income and expenditures must equal national income The total amount of leakages...
23. (1 pt) In 2015 the public debt was $18.2 trillion. Put this number in perspective...
23. (1 pt) In 2015 the public debt was $18.2 trillion. Put this number in perspective by relating the debt to GDP, to other countries' debt, to the amount of interest payments on the debt, and to ownership of the debt. In 2015 debt was about dramatically starting in 2008 because of massive annual budget deficits percent of GDP and the percentage (rose, fell) 24. (1pt.) Can the large public debt cause the nation to go bankrupt? Explain. The large...
Subject 2: National Accounts & Balance of Payments (30%) A. The government of Acadia, instead of ...
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Which of the following is true about the determinants of national competitive advantage? Question 5 options:...
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Which of the following is NOT true about gross domestic product (GDP)? a. It includes only...
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Which of the following events can cause an hyperinflation? Select one: O a. The government reduces...
Which of the following events can cause an hyperinflation? Select one: O a. The government reduces corporate taxes to help economic growth b. The government significantly raises interest rates O c. An increase in the cost of gasoline by 10% o d. The government increases minimum wage to account for the rising cost of living e. The government prints twice as much money to pay for the national debt
which of these statements is true about the us
national debt? two thirds of the debt is held domestically
1st attempt Which of these statements is true about the U.S. national debt? Choose one: O A. The ratio of publicly held debt to GDP is the smallest in the world. OB. The ratio of publicly held debt to GDP is the highest in the world. O C. Most of the debt is owed to foreigners. O D. Annual interest payments...
Which of the following is true about a strict Currency board system? Multiple Choice ) The currency board system enhances the ability of the government to print money Ο The government lacks the ability to set interest rates C ) A currency board system is govemed by the market forces of demand and supply C ) A currency boud cannot issue additional domestic notes and coins despite the presence of foreign exchange reserves to back Ο A currency board system...
3. National accounting identities Let I stand for investment spending, G for government purchases, X for exports, S for saving, NT for net taxes (taxes minus transfer payments), and IM for imports. Consider the following identity and answer the questions that follow. I+ G+X = S+ NT + IM Which of the following best characterizes the above identity? The total amount of leakages from the nation's flow of income and expenditures must equal national income The total amount of leakages...
23. (1 pt) In 2015 the public debt was $18.2 trillion. Put this number in perspective by relating the debt to GDP, to other countries' debt, to the amount of interest payments on the debt, and to ownership of the debt. In 2015 debt was about dramatically starting in 2008 because of massive annual budget deficits percent of GDP and the percentage (rose, fell) 24. (1pt.) Can the large public debt cause the nation to go bankrupt? Explain. The large...
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