Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 15, Problem 9CQ
To determine
Explain how the debt financing influence the welfare of future generation.
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Explain how, for a country with a high debt ratio, if the financial markets fear that the country will default on its debt this fear may be self-fulfilling
It is possible to give debt relief to a country without reducing its principal nor interest by simply extending the maturity of the loan in an old debt for new debt swap. True ☐ False ☐ Defend your answer
According to your textbook, what percent of U.S. debt do foreigners hold? If the
interest rate on U.S. Treasury Debt is 3 percent, how much do foreigners collect each
year from the U.S. Treasury? (Assume total debt of $13 trillion.)
Chapter 15 Solutions
Macroeconomics: Private and Public Choice (MindTap Course List)
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