Which of the Following Is True of the Portion of the Net

question 137

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:

Craft Unions

Labor unions that represent workers specialized in a particular craft or trade, focusing on securing better wages, hours, and working conditions for their members.

Industry

Sectors of the economy concerned with the production and manufacture of goods, often categorized into heavy, light, and high-tech segments.

Organization Design

The process of shaping an organization's structure and roles to align with business objectives and strategies.

Organizational Success

The achievement of the goals and objectives set by an organization through effective planning, strategy implementation, and performance management.