Plzz HELP
Predict the consequences of investors doubting the federal government's ability to repay the national debt (1 point)
Investors would purchase new securities and try to sell their existing securities back to the government,
resulting in a cash crunch.
O
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
O
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.

Question

10-11-2021
History

contestada

Plzz HELP
Predict the consequences of investors doubting the federal government's ability to repay the national debt (1 point)
Investors would purchase new securities and try to sell their existing securities back to the government,
resulting in a cash crunch.
O
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
O
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.

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Parrain Parrain · Answer 1 · 2021-11-15T12:58:47+01:00

If investors doubted that the federal government could pay back 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.

If people doubt that the government can pay back debt:

They will stop borrowing the government money
The government will see a shortage of funds available to borrow
Interest rates would rise as a result of the shortage of funds

The way people borrow the government money is by buying securities from the Treasury and if they doubt the government can pay them back, they will stop buying securities which would increase rates and make it more expensive to borrow.

Find out more at https://brainly.com/question/18874286.

themystriouschick1 themystriouschick1 · Answer 2 · 2022-01-04T20:48:22+01:00

Answer: National Debt and the Federal budget Quick Check

1. Complete the following sentence.

When the total revenues in the federal government are greater than the total expenses in a given year, the budget:

: has a surplus.

2. In which situation does the national debt decrease?

: The federal government has a surplus in the budget.

3. Compare public debt to intragovernmental debt.

: Public debt is securities issued by the Treasury to investors while intragovernmental debt are loans within the federal government from the excess funds of other agencies.

4. Predict the consequences of investors doubting the federal government's ability to repay 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.

3. What set of actions are most likely to result in a surplus in the federal government budget?

: Increase tax rates for individual income and corporate income taxes. Decrease the number of employees as well as cuts in spending for social security and defense.

Explanation:

These are 100 percent correct

!00%