Which of the Following Is TRUE of the Portion of the Net

question 111

Multiple Choice

Which of the following is TRUE of the portion of the net public debt held by foreign residents?

• A) It will definitely be a benefit to current and future generations of U.S residents, because foreign residents have shown a willingness to lend to the U.S. government in exchange for rates of return significantly lower than they can receive elsewhere in the world.
• B) It will definitely be a burden on current and future generations of U.S. residents who will have to pay interest on this portion of the debt, thereby transferring a portion of future U.S. incomes abroad.
• C) It will be a burden on future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents.
• D) It will be a benefit to future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents

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Definitions:

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Crying

The act of shedding tears as a response to an emotional state, such as sadness, happiness, or pain.

Ignoring

A behavior management strategy where certain behaviors are deliberately not reinforced, with the aim of reducing or extinguishing them by not providing attention.