Statement I: If There Were Deflation,the National Debt Would Become

question 59

Multiple Choice

Statement I: If there were deflation,the national debt would become easier to pay off.
Statement II: Foreign investors own over 75 percent of our national debt.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Subscription Price

The cost at which existing shareholders can buy additional shares of a company, often at a discount.

Rights Offering

A financial mechanism by which companies offer existing shareholders the right to buy additional shares directly from the company at a predetermined price, usually at a discount, before the shares are offered to the public.

Value Of A Right

In finance, the value associated with a right, such as a stock right, which is the value to buy additional shares at a discounted price.

Market Price

The current valuation at which an asset or service is available for sale or purchase in the marketplace.