To Say That "The U

question 38

Multiple Choice

To say that "the U.S. public debt is mostly held internally" is to say that

• A) only interest payments on the public debt are an economic burden.
• B) official figures understate the size of the public debt.
• C) the bulk of the public debt is owned by U.S. citizens and institutions.
• D) the public debt is equal to the land and building assets owned by the federal government.

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Definitions:

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Efficient Capital Market

A market where all relevant information is fully and immediately reflected in securities prices, ensuring that securities are always fairly priced.

Security Prices

The market value or price at which securities, such as stocks or bonds, are bought and sold.

Available Information

Data or facts that are accessible to the public and can be used to make educated decisions or analyses.