One of the effects of the Japanese and Chinese purchases of U.S. Treasury bonds is that

Question

Quizplus · Accepted Answer

A) The Japanese and Chinese purchases of U.S. Treasury bonds help keep interest rates low, which protects the American real estate business from a collapse that would occur if interest rates were to be raised.
B) By buying U.S. Treasury bonds, the Japanese and Chinese provide a source of financing for the U.S. government, allowing it to continue deficit spending, which in turn keeps the American consumer spending rather than saving.
C) By investing in U.S. Treasury bonds, the Japanese and Chinese help support the value of the U.S. dollar, which in turn benefits their exports to the United States.

Therefore, all of the above choices are correct.

One of the Effects of the Japanese and Chinese Purchases