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:

Generalized Other

A concept in sociology referring to the common behavioral expectations of society that individuals take into account when determining how to act.

Play Stage

Mead’s first stage of social experience, in which young children imitate the activities of people around them.

Sense of Self

An individual's perception of their own identity and personal attributes, including self-awareness and self-esteem.

Role Taking

In symbolic interaction theory, the process of imaginatively occupying the position of another person and viewing the situation and the self from that person’s perspective; the process of imagining the other’s attitudes and anticipating that person’s responses.