Asked by Devyn Smallwood on Apr 26, 2024
Verified
Statement I: If there were deflation,the national debt would become easier to pay off.
Statement II: Foreign investors own over 75 percent of our national debt.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Deflation
A decrease in the general price level of goods and services, leading to an increase in the purchasing power of money.
Foreign Investors
Individuals or entities that invest capital in business ventures in a country other than their own, seeking to earn a return on their investment.
- Acquire an understanding of the scope and significance of state debt.
Verified Answer
KG
Kazuno GatakanoApr 28, 2024
Final Answer :
D
Explanation :
Statement I is false because deflation increases the real value of debt, making it harder to pay off. Statement II is false as foreign investors do not own over 75 percent of most countries' national debt; the percentage varies significantly by country.
Learning Objectives
- Acquire an understanding of the scope and significance of state debt.