When bonds are sold to investors, the government benefits because it gets an injection of cash, while the purchaser benefits because in a few years it will have accrued interest.
Answer and Explanation:
The following are the examples:
1. Effect on the big deficit or the public debt crisis: It involves the present eurozone crisis, in this the rate of interest and the exchange rate would be effected
2. The monetary system i.e. international would be under scrutiny. As if there is an increase in the renminbi of chinese so the outlook of the would be varied on the currencies i.e. reserved, currency exchange, etc
3. Many of the countries would continue the balance of payment that represent the country would import more goods, services as compared with the exports that would become dangereous
4. The ownership, the framework of the government would be varied over the globe
D. Economic growth creates the wealth that pays for defense and future investments.
When you make one payment in full at the end of the year.
