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China Owns Hundreds of Billions of Dollars Worth of U

Question 68

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China owns hundreds of billions of dollars worth of U.S. federal debt. If suddenly they lost their appetite for purchasing federal debt and began selling off large portions of their U.S. debt holdings, how would this hamper the efforts of the federal government's effort to maintain continued deficit spending, even with the help of the Federal Reserve?

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In this case the large portion of debt h...

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