Answer: Coupon repayment
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What is one reason why foreign governments lend to the U.S. government?
It went down. Consider the formula GDP = C+I+G+ ( X-M ). A country is undergoing a boom in consumption of domestic and foreign luxury goods . In one year the dollar growth in imports is greater than the dollar growth in domestic consumption .
Tue Dec 11 2012 · Governments tend to have a monopoly on taxation. When governments default it tends to limit their ability to borrow money for some years which encourages them to make payments on bonds and to avoid extreme dilutions of currency value. Foreign lenders may also have political motives for doing so. The US lent money weapons and supplies to the UK ...
2 . Consider the formula GDP = C + I + G + ( X – M). A country is undergoing a boom in consumption of domestic and foreign luxury goods. In one year the dollar growth in imports is greater than the dollar growth in domestic consumption.
When investors worry about inflation and therefore demand high interest rates countries might have to issue debt in a foreign currency . This is a particularly common strategy for emerging and developing markets around the world. Often these governments will choose to …
The government can use deficit spending to increase aggregate demand and pull the economy out of recession Which of the following is one way the Federal Reserve Bank serves the government ? selling government securities
Fri Jan 12 2018 · No. Nor has the U.S. ever owed so much. Foreign i...
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