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(Solved): Suppose because of the growing public debt in the U.S. foreigners no longer think that U.S. Treasur ...
Suppose because of the growing public debt in the U.S. foreigners no longer think that U.S. Treasury securities are the safest asset and try to sell it. 1.) Using the line drawing tool, show how the value of the U.S. dollar would be affected. Properly label your line. 2.) Using the point drawing fool, indicate the new equilibrium and label it ' 2 '. Carefully follow the instructions above, and only draw the required objects. If foreigners lose faith in U.S. Treasury securities, the dollar will