Study guides, Class notes & Summaries

Question Question 1 A government can finance its budget deficit by doing all of the following except: buying bonds. borrowing from its central bank. selling bonds. printing money. 2 points Question 2 According to some economists when a country's debt-to-GDP ratio exceeds 90 percent: the interest rate will fall, reducing debt service payments. the government will have to purchase more long-term securities. it will compel citizens to buy more U.S. debt. the government will face financial instabili...

Question Question 1 A government can finance its budget deficit by doing all of the following except: buying bonds. borrowing from its central bank. selling bonds. printing money. 2 points Question 2 According to some economists when a country's debt-to-GDP ratio exceeds 90 percent: the interest rate will fall, reducing debt service payments. the government will have to purchase more long-term securities. it will compel citizens to buy more U.S. debt. the government will face financial instabili...