In the years leading up to the global financial crisis (say, around 2005-06), the large U.S. federal government deficits have not led to high long-term interest rates (unlike in the 1980s). Which of the followings may not be a possible explanation? a. global saving glut (in excess of global investment). b. foreign exchange intervention by central banks in East Asia (i.e., purchases of US Tbonds) as part of their efforts to promote the exports via keeping their currencies undervalued (or at least preventing their currencies from appreciating). c. Saving surpluses of oil exporters, such as Saudi Arabia. d. strong stock market rebound. e. None of the above.
In the years leading up to the global financial crisis (say, around 2005-06), the large U.S. federal government deficits have not led to high long-term interest rates (unlike in the 1980s). Which of the followings may not be a possible explanation? a. global saving glut (in excess of global investment). b. foreign exchange intervention by central banks in East Asia (i.e., purchases of US Tbonds) as part of their efforts to promote the exports via keeping their currencies undervalued (or at least preventing their currencies from appreciating). c. Saving surpluses of oil exporters, such as Saudi Arabia. d. strong stock market rebound. e. None of the above.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter31: The Impacts Of Government Borrowing
Section: Chapter Questions
Problem 3SCQ: In the late 1990s, the U.S. government moved from a budget deficit to a budget surplus and the trade...
Related questions
Question
In the years leading up to the global financial crisis (say, around 2005-06), the large U.S.
federal government deficits have not led to high long-term interest rates (unlike in the 1980s).
Which of the followings may not be a possible explanation?
a. global saving glut (in excess of global investment).
b. foreign exchange intervention by central banks in East Asia (i.e., purchases of US Tbonds) as part of their efforts to promote the exports via keeping their currencies
undervalued (or at least preventing their currencies from appreciating).
c. Saving surpluses of oil exporters, such as Saudi Arabia.
d. strong stock market rebound.
e. None of the above.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning