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Paper help Economics share of U… Show more “border: 0px; height: 0px; margin: 0

Economics

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share of U… Show more “border: 0px; height: 0px; margin: 0px; padding: 0px; width: 707px”> Suppose that the share of U.S. GDP going to domestic consumption remains constant. Initially, the federal government was operating with a balanced budget, but this year it has increased its spending well above its collection of taxes and other sources of revenues. To fund its deficit spending, the government has issued bonds. So far, very few foreign residents have shown any interest in purchasing bonds. “MsoListParagraphCxSpFirst”>a.) “font:7pt/normal ‘Times New Roman’;”> What must happen to induce foreign residents to buy the bonds? “MsoListParagraphCxSpLast”>b.) “font:7pt/normal ‘Times New Roman’;”> If foreign residents desire to purchase the bonds, what is the most important source of dollars to buy them? • Show less

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