redict the consequences of investors doubting the federal government's ability to repay the national debt.(1 point)
Responses
Investors would purchase new securities and try to sell their existing securities back to the government, resulting in a cash crunch.
Investors would purchase new securities and try to sell their existing securities back to the government, resulting in a cash crunch.
More investors would be purchasing the securities, resulting in a decrease in interest rates, which actually decreases the cost of borrowing for the national debt.
More investors would be purchasing the securities, resulting in a decrease in interest rates, which actually decreases the cost of borrowing for the national debt.
Fewer investors would be purchasing the securities from the Treasury, resulting in an increase in interest rates, and a further increase in the cost of borrowing for the national debt.
Fewer investors would be purchasing the securities from the Treasury, resulting in an increase in interest rates, and a further increase in the cost of borrowing for the national debt.
Investors would be selling their existing securities and buy new securities at lower interest rates, which lead to a decrease in available cash for the federal government.
Whats the right asnwer
The correct answer is:
Investors would be selling their existing securities and buy new securities at lower interest rates, which leads to a decrease in available cash for the federal government.
The correct answer would be:
Fewer investors would be purchasing the securities from the Treasury, resulting in an increase in interest rates, and a further increase in the cost of borrowing for the national debt.
The correct answer would be:
Fewer investors would be purchasing the securities from the Treasury, resulting in an increase in interest rates, and a further increase in the cost of borrowing for the national debt.