According to the purchasing power parity theorem, what must be approximately equal across countries: the nominal exchange rate or the real exchange rate?
When people “buy government bonds,” are they borrowing money or saving money?
If the U.S.-debt-to-GDP ratio were 100% and if the interest rate on the debt were 5% (not far from the truth at present), then what fraction of U.S. GDP would go toward paying interest on the debt? (Note: After World War II, U.S. debt was greater than 100% of GDP.)
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