Question 1

The debt-to-GDP ratio will always decrease if

Accepted Answer

A) the economy enters a boom 
B) the government implements sharp spending cuts 
C) government tax revenues as a share of GDP do not decrease 
D) the primary deficit grows at the same rate as GDP 
E) none of the above 
A) the economy enters a boom 
B) the government implements sharp spending cuts 
C) government tax revenues as a share of GDP do not decrease 
D) the primary deficit grows at the same rate as GDP 
E) none of the above

Question 2

Why is so much of the U.S.federal debt owned by foreigners?

Accepted Answer

A) U)S. government bonds tend to pay higher yields than the securities of other governments 
B) U)S. domestic savings are insufficient to support the national debt 
C) it is difficult for international investors to cash in their U.S. government bonds 
D) international investors believe that the U.S. dollar will never lose any of its value 
E) none of the above 
A) U)S. government bonds tend to pay higher yields than the securities of other governments 
B) U)S. domestic savings are insufficient to support the national debt 
C) it is difficult for international investors to cash in their U.S. government bonds 
D) international investors believe that the U.S. dollar will never lose any of its value 
E) none of the above

Question 3

Which of the following statements is TRUE?

Accepted Answer

A) the debt-to-GDP ratio can never exceed 100 percent 
B) if GDP and the national debt both increase, then the debt-to-GDP ratio cannot change 
C) whenever the budget deficit increases, the debt-to-GDP ratio also increases 
D) the debt-to-GDP ratio will always decrease as long as GDP is growing 
E) none of the above 
A) the debt-to-GDP ratio can never exceed 100 percent 
B) if GDP and the national debt both increase, then the debt-to-GDP ratio cannot change 
C) whenever the budget deficit increases, the debt-to-GDP ratio also increases 
D) the debt-to-GDP ratio will always decrease as long as GDP is growing 
E) none of the above

Question 4

Between 2000 and 2009, total U.S.government outlays were on average

Accepted Answer

A) 12 percent of GDP 
B) 14 percent of GDP 
C) 18 percent of GDP 
D) 20 percent of GDP 
E) 25 percent of GDP 
A) 12 percent of GDP 
B) 14 percent of GDP 
C) 18 percent of GDP 
D) 20 percent of GDP 
E) 25 percent of GDP

Question 5

Many European countries chose to employ austerity measures during the Great Recession despite the fact that

Accepted Answer

A) this would actually increase budget deficits due to lower tax revenues 
B) this would boost their own economies at the expense of their trade partners 
C) exchange rates would have to be adjusted 
D) this would make their debt crisis worse 
E) economic activity would be reduced leading to increased hardship for much of its population 
A) this would actually increase budget deficits due to lower tax revenues 
B) this would boost their own economies at the expense of their trade partners 
C) exchange rates would have to be adjusted 
D) this would make their debt crisis worse 
E) economic activity would be reduced leading to increased hardship for much of its population

Question 6

In 2013, the debt-to-GDP ratio in the U.S.was approximately

Accepted Answer

A) 35% 
B) 50% 
C) 64% 
D) 75% 
E) 107% 
A) 35% 
B) 50% 
C) 64% 
D) 75% 
E) 107%

Question 7

What contributed to the recent debt crises in several European countries?

Accepted Answer

A) many loans made by banks before the crises were unlikely to be paid back 
B) these countries had very high debt-to-GDP ratios 
C) Germany, which often serves as the locomotive for European growth, encountered a long and severe recession 
D) all of the above 
E) only 
A) and 
B)  
A) many loans made by banks before the crises were unlikely to be paid back 
B) these countries had very high debt-to-GDP ratios 
C) Germany, which often serves as the locomotive for European growth, encountered a long and severe recession 
D) all of the above 
E) only 
A) and 
B)

Question 8

How large was Greece's debt-to-GDP ratio in 2010?

Accepted Answer

A) 86% 
B) 107% 
C) 129% 
D) 169% 
E) 208% 
A) 86% 
B) 107% 
C) 129% 
D) 169% 
E) 208%

Question 9

Which of the following is FALSE for the U.S.national debt held by the public as a portion of GNP?

Accepted Answer

A) it declined in the 1920s but increased in the 1930s 
B) it was at its highest in the late 1940s 
C) it declined significantly from 1950 to 1970 
D) it increased steadily from 1995 to 2012 
E) it increased significantly from 2008 - 2012 
A) it declined in the 1920s but increased in the 1930s 
B) it was at its highest in the late 1940s 
C) it declined significantly from 1950 to 1970 
D) it increased steadily from 1995 to 2012 
E) it increased significantly from 2008 - 2012

Question 10

Which of the following countries had the LOWEST debt-to-GDP ratio in 2010?

Accepted Answer

A) Greece 
B) Ireland 
C) Italy 
D) Portugal 
E) Spain 
A) Greece 
B) Ireland 
C) Italy 
D) Portugal 
E) Spain

The debt-to-GDP ratio will always decrease if

Why is so much of the U.S.federal debt owned by foreigners?

Which of the following statements is TRUE?

Between 2000 and 2009, total U.S.government outlays were on average

Many European countries chose to employ austerity measures during the Great Recession despite the fact that

In 2013, the debt-to-GDP ratio in the U.S.was approximately

What contributed to the recent debt crises in several European countries?

How large was Greece's debt-to-GDP ratio in 2010?

Which of the following is FALSE for the U.S.national debt held by the public as a portion of GNP?

Which of the following countries had the LOWEST debt-to-GDP ratio in 2010?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 20: The national debt

The debt-to-GDP ratio will always decrease if

Why is so much of the U.S.federal debt owned by foreigners?

Which of the following statements is TRUE?

Between 2000 and 2009, total U.S.government outlays were on average

Many European countries chose to employ austerity measures during the Great Recession despite the fact that

In 2013, the debt-to-GDP ratio in the U.S.was approximately

What contributed to the recent debt crises in several European countries?

How large was Greece's debt-to-GDP ratio in 2010?

Which of the following is FALSE for the U.S.national debt held by the public as a portion of GNP?

Which of the following countries had the LOWEST debt-to-GDP ratio in 2010?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters