The US has a more serious debt problem than Japan because a) Japanese debt remains in its real economy where it cannot lead to hyperinflation problems b) US debt remains in the financial economy where it can lead to serious inflation problems c) US debt is held by foreigners and US M2 has been growing much more quickly than Japan's d) Japanese debt is held by foreigners and its M2 has been growing more quickly that US M2 e) All of the answers are correct
The US has a more serious debt problem than Japan because a) Japanese debt remains in its real economy where it cannot lead to hyperinflation problems b) US debt remains in the financial economy where it can lead to serious inflation problems c) US debt is held by foreigners and US M2 has been growing much more quickly than Japan's d) Japanese debt is held by foreigners and its M2 has been growing more quickly that US M2 e) All of the answers are correct
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The US has a more serious debt problem than Japan because
a) Japanese debt remains in its real economy where it cannot lead to hyperinflation problems
b) US debt remains in the financial economy where it can lead to serious inflation problems
c) US debt is held by foreigners and US M2 has been growing much more quickly than Japan's
d) Japanese debt is held by foreigners and its M2 has been growing more quickly that US M2
e) All of the answers are correct
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