ncesMcGrawH.URefer to the figure below depicting U.S. national debt, and then answer two questions.Federalreserve11%ForeignersFederal Government1°FMostly clearFederalagencies13%29%SocialSecurity12%32%State and local-governments3%U.S. Private SectorInstructions: Enter your responses as a whole number.a. What percentage of U.S. debt do foreigners hold?percentb. If the interest rate on U.S. Treasury debt is 3 percent, how much interest do foreigners collect each year from the U.S. Treasury?(Assume a total debt of $23 trillion.)$billionQ Search< Prev9

The debt held by a country is the sum of all the liabilities it holds, be it from foreign loans or…

Instructions: Enter your responses as a whole number. a. What percentage of U.S. debt do foreigners hold? percent b. If the interest rate on U.S. Treasury debt is 3 percent, how much interest do foreigners collect each year from the U.S. Treasury? (Assume a total debt of $23 trillion.) billion

Instructions: Enter your responses as a whole number. a. What percentage of U.S. debt do foreigners hold? percent b. If the interest rate on U.S. Treasury debt is 3 percent, how much interest do foreigners collect each year from the U.S. Treasury? (Assume a total debt of $23 trillion.) billion

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

please solve
4. Greece joined the Eurozone formally on 1 January 2002 but ran into a sovereign debt crisis in late 2009. The richer northern European countries decided to bail them out, working together with the IMF and ECB. One strong argument supporting the bailout is the "doom-loop" argument. Could you explain what a doom-loop is and why other Eurozone countries should concern the crisis in Greece given the argument?
A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1
Question 4 Ruggerman bank expects that the Mexican peso will depreciate against US dollar from it is spot rate of $0.44 to $0.43 in 30 days. The following interbank lending and borrowing rates: Currency U.S Dollar Lending Rate Borrowing Rate 8.40% 9.6 % Mexican peso 24.0% 22.0% Assume that Ruggerman has a borrowing capacity of MXP15 million in the interbank market. Show the steps and calculate the profit could be generated from this strategy.
6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2014 is $ experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S. is Suppose that in 2015, the United States runs a current account surplus of $514 billion. If other factors remained constant, the net international investment position of the United States would during 2015 to $ billion. Suppose that during 2015, the U.S. net external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. U.S.-owned assets held abroad depreciated (lost value). The U.S. current account deficit was greater than the country's net borrowing.…
when it comes to the application of how the federal budget deficit affects economic variables, what is the impact of a federal budget deficit on interest rates and the trade balance?
1. In what ways do you think the debt of your country influences the life of ordinary citizens? 2. Suggest three effective ways to relieve your country of it's debts.
Paragraph H H Euros per Dollar Quantity of Dollars Styles 1 Title 1. Headline: Fed raises interest rates; attracts foreign investors. Supply of dollars (increase / decrease / stay the same) Demand for dollars (increase / decrease / stay the same) Euros per Dollar (increase / decrease / stay the same) Quantity of Dollars (increase / decrease / stay the same) Select- Editing Create PDF C and Share link Sh A Consider the foreign exchange market for dollars as discussed in Chapter 14, section 3.2 of your text and depicted above. How would the news headlines below affect the market for foreign exchange? Highlight or change the color of your response. 2 Display Settings
Please help me with 6 and 8. Thank you
The US economy slowed down sharply in the latter half of 2000, and the actual recession started early in 2001. Monetary policy eased sharply throughout 2001, and for the first half of the year, fiscal policy did not change very much. Yet the dollar continued to appreciate in the first half of the year. It then fell sharply during the third quarter, but rebounded in the fourth quarter and returned to its highs in February 2002. It then fell 12% during the next five quarters. Why did the dollar remain strong throughout the recession, and why did it then decline sharply in 2002 even though fiscal policy became more expansive?
10. Which of the following would cause a financial account (FA) surplus?a. the sale of heavy trucks used in construction by a domestic seller to a foreign buyer b. the purchase of stock in a U.S. corporation by a U.S. buyer c. the purchase of stock in a U.S. corporation by a foreign buyer d. the sale of stock in a U.S. corporation held by a foreign owner to a domestic buyer
Have recent inflationary pressures in the U.S. made the dollar stronger or weaker relative to other currencies? How might this impact the willingness of other countries to invest in American debt?