Macroeconomic
The United States government has a 100% repayment rate—it has always repaid its debt. Given what we know about risk and return, do you think the USA is generally charged high or low interest rates on borrowing money? Similarly, do you think Iraq (a poor and economically unstable country) is likely to pay high or low interest rates on loans?
Explain the concept of “crowding out”. Based on the data collected, which of these countries likely has the most extensive “crowding out”? Explain.
