A Public Debt Which Is Owed to Foreigners Can Be

question 49

Multiple Choice

A public debt which 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:

Signal-Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information in the presence of uncertainty.

Just Noticeable Difference

The smallest change in intensity of a stimulus that can be detected by the sensory system.

Absolute Threshold

The minimum stimulus intensity required to be detectable by the senses.

Stimulus Intensity

The magnitude or strength of a stimulus, which can affect the perception and response of the sensory system to that stimulus.