Before addressing the following questions, you will first need to collect some
data! Use online websites (such as Wikipedia) to find economic data for Japan,
USA, India, Italy, Iraq, and Mexico. Specifically, find recent data for per capita
GDP and government debt-to-GDP ratio.
1. Based on the data collected, do you think that debt is a problem faced by
economically advanced countries, undeveloped countries, or both? Justify
your answer.
2. 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?
3. Explain the concept of \"crowding out\" . Based on the data collected, which
of these countries likely has the most extensive \"crowding out\"? Explain.
Once you have completed this assignment, please save it in .doc, .docx or RTF
