Which of the Following Is True of Government Debt

question 37

Multiple Choice

Which of the following is true of government debt?

• A) The interest payments on federal bonds held by Americans will be paid to investors in other countries.
• B) The share of the federal debt held by foreigners has declined from 34 percent of GDP in 1990 to less than 10 percent of GDP in 2015.
• C) Between 2000 and 2015, federal debt owed to foreigners has risen from approximately 10 percent to 34 percent of GDP.
• D) Less than 5 percent of the federal debt is owed to foreigners.

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Definitions:

Simultaneous Game

A type of game in game theory where players make their moves at the same time without knowing the choices of the other players.

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Best Response

A strategy that produces the most favorable outcome for a player, taking other players' strategies as given.

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A situation in game theory where all players make their decisions or moves at the same time without knowledge of the others' choices.