Why Is Foreign Government Ownership of U

question 134

Multiple Choice

Why is foreign government ownership of U.S.debt NOT currently a huge concern among many economists?

• A) It could lead to eventual foreign control of our economy and policies,which would encourage economic growth in the future.
• B) The United States has a proven track record of negotiating debt-forgiveness deals,so it is unlikely that the debt will have to be paid back.
• C) Foreign ownership of U.S.debt drives interest rates up,which is good for savers in the United States.
• D) The amount of debt held by foreigners is substantially less than the money the United States owes itself.
• E) Foreign countries would bail out the United States if its debt ever became too large to manage.

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