Economists say the United States has a favorable interest differential because:
A) interest that the U.S. government pays on Treasury debt is unusually low.
B) returns on foreign portfolio investment in the United States are low.
C) returns on foreign portfolio investment in the United States are high.
D) returns on U.S. international investments are unusually high.
Correct Answer:
Verified
Q42: In the case of the United States,
Q43: The long-run budget constraint will be met
Q44: The United States has experienced a favorable
Q45: If you prefer to smooth consumption, which
Q46: The risk premium associated with a government
Q48: The exorbitant privilege for the United States
Q49: What is a sudden stop?
A) a situation
Q50: The LRBC dictates that if initial wealth
Q51: A sudden stop in credit availability:
A) is
Q52: In the absence of consumption smoothing, the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents