A Public Debt That Is Owed to Foreigners Can Be

question 112

Multiple Choice

A public debt that is owed to foreigners can be burdensome because

• A)foreign interest rates are persistently higher than domestic interest rates.
• B)the payment of interest reduces the volume of goods and services available for domestic uses.
• C)the payment of interest will conflict with a nation's foreign aid programs.
• D)the payment of interest will necessarily have a deflationary effect on prices in the paying nation.

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Definitions:

Social Security Act

A law enacted in 1935 in the United States to create a system of transfer payments in which younger, working people support older, retired people.

National Health Insurance

A healthcare system in which the government provides insurance coverage for all or most residents of a country, often funded through taxes.

American Medical Association

The largest association of physicians and medical students in the United States, dedicated to promoting the art and science of medicine for better public health.

American Workers

Employees in the United States who contribute to the country's economy through various sectors and industries.