Reference no: EM131876873
The US public debt now stands at approximately $21 trillion, making the country the largest debtor nation in the world. Current US real GDP is approximately $19.5 trillion. One option for debt repayment is for the US Federal Reserve System [the US central bank] to create new money and then pay debt holders as needed.
[a] What effect would pursuit of this option have on long run inflation in the US [i.e. increase, decrease, or no effect]?
Hint: See pp. 238-241 in Chapter 11 of the course textbook.
[b] What effect would this option have on nominal interest rates in the US [i.e. increase, decrease, or no effect]?
Hint: See pp. 242-244 in the textbook.
[c] What effect would pursuit of this option have on aggregate purchasing power in the US [i.e. increase, decrease, or no effect]?
Hint: See p. 245 in the textbook.
What is the contractual rate of interest
: If $400,000 bonds were issued on January 1 at face value and they pay $24,000 interest annually, what is the contractual rate of interest
|
What is the name of the organization or program
: What is the name of the organization or program? What is the geographic location? What is the organizational mission?
|
How did this game affect your view on poverty
: $PENT is an online game about surviving poverty and homelessness. Players must make the difficult decisions necessary to live for one month on $1,000.
|
What is the total amount of cash interest
: Veronique Inque issued $2,000,000 in bonds with a stated rate of 10%, due in 10 years. What is the total amount of cash interest
|
Determining the nominal interest rates
: What effect would this option have on nominal interest rates in the US [i.e. increase, decrease, or no effect]?
|
Describes the difference between the trial balances
: Which of the following describes the difference between the trial balance on December 31, 2013 and the trial balance on January 1, 2014
|
Discuss brief summary of the entry-level marketing position
: For this week's written assignment you are a manager at, Ad It Up, a mid-size marketing firm. Over the last five years you notice that issues relating.
|
Describe the sql clauses used in the definition
: Describe the SQL clauses used in the definition of: a primary key constraint an alternate key constraint a foreign key constraint a check constraint
|
What is the maximum number of packets
: What is the maximum number of packets per second that can be transmitted by the link?
|