which of the adhering to is a reason why the public debt may impose a burden on future​ generations?

A) Government borrowing to finance the debt may drive up interemainder rates, crowding out investment and usage.

You are watching: Refinancing of the public debt might drive up real interest rates because

B) Fopower owners of UNITED STATE debt will not spfinish their earnings on UNITED STATE products

C) Future generations will certainly not have as much revenue as existing generations.

D) Current government spfinishing is not offered for infrastructure and also resources investment


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6. If tbelow is a shortage of loanable funds, then

a.

the amount of loanable funds demanded is higher than the amount of loanable funds provided and the interemainder price is above equilibrium.

b.

the quantity of loanable funds demanded is greater than the amount of loanable funds offered and the interemainder price is below equilibrium.

c.

the amount of loanable funds provided is greater than the amount of loanable funds demanded and also the interemainder rate is over equilibrium.

d.

the amount of loanable funds offered is higher than the quantity of loanable funds demanded and the interest price is listed below equilibrium.

 

7. We associate the term debt finance with

a.

the bond sector and also we associate the term equity finance with the stock market.

b.

the stock market and we associate the term equity finance via the bond market.

c.

financial intermediaries and we associate the term equity finance via financial sectors.

d.

financial sectors and we associate the term equity finance through financial intermediaries.

8. If the demand for loanable funds shifts to the ideal, then the equilibrium interest rate

a.

and the amount of loanable funds rises.

b.

and also the quantity of loanable funds falls.

c.

rises and the quantity of loanable funds drops.

d.

falls and the quantity of loanable funds rises.

 

9. Long-term bonds are

a.

riskier than temporary bonds, and also so interest prices on irreversible bonds are typically lower than interemainder rates on short-lived bonds.

b.

riskier than short-term bonds, and so interest rates on permanent bonds are generally higher than interest prices on momentary bonds.

c.

much less risky than temporary bonds, and so interemainder rates on permanent bonds are typically lower than interemainder rates on momentary bonds.

d.

much less riskies than momentary bonds, and also so interest prices on permanent bonds are commonly higher than interemainder rates on momentary bonds.

10. Compared to bondholders, stockholders

a.

challenge greater threat and also have the potential for higher returns.

b.

confront greater hazard however get a fixed payment.

c.

confront lower danger and also have actually the potential for better returns.

d.

confront lower risk yet receive a fixed payment.

11. The old adage, "do not put all your eggs in one basket",€ is exceptionally similar to a contemporary little bit of advice concerning financial matters:

a.

Buy low-threat bonds.

b.

Use a tool of exreadjust.

c.

Diversify.

d.

Intermediate.

12. A budobtain surplus is created if

a.

the federal government sells even more bonds than it buys earlier.

b.

the government spends more than it receives in taxes revenue.

c.

exclusive conserving is better than zero.

d.

None of the above is correct.


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14. The element industry have the right to finest be defined as, wright here __________. a. Families buy goods and also services. b. Firms buy goods and also services. c. Firms buy the services of labor, land and capital. d. The federal government sells goods and services.

15.Investment in the US is financed through __________. a. Private savings, surplprovides in the federal government budacquire, and also borrowing from the rest of the people. b. Private savings, deficits in the government budget, and also borrowing from the remainder of the people. c. Private lfinishing, deficits in the federal government budobtain, and lfinishing to the remainder of the civilization. d. Private savings and also borrowing from the remainder of the human being.

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16. In the Circular Flow Model, products and also services created by company firms are sold on __________. a.. The goods industry b. In the variable market c. In the labor sector d. In the financial market

17. If we import more than we export from the rest of the people, we __________. a.. We have to borrow an equal amount from the rest of the human being. b. We have the right to lend an equal amount to the rest of the people. c. We have a excess. d. We are helping to finance the investment of the remainder of the people.

18. The Circular Flow Model reflects that the family sector earns its revenue __________. a. Selling components of production. b. Buying components of production. c. Selling products and also services. d. Selling financial assets