US government's credit rating is high mainly because US has had the highest GDP in the world for more than the past half century. Source of US gov't income is the tax revenue, which is proportionate to the GDP. It can sell new issues of bonds to partially retire maturing debts. It can print dollars that are also accepted all over the world. All of the above
US government's credit rating is high mainly because US has had the highest GDP in the world for more than the past half century. Source of US gov't income is the tax revenue, which is proportionate to the GDP. It can sell new issues of bonds to partially retire maturing debts. It can print dollars that are also accepted all over the world. All of the above
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
US government's credit rating is high mainly because
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US has had the highest GDP in the world for more than the past half century. |
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Source of US gov't income is the tax revenue, which is proportionate to the GDP. |
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It can sell new issues of bonds to partially retire maturing debts. |
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It can print dollars that are also accepted all over the world. |
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All of the above |
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