Exam 12: Deficits and Debt

When there is excess aggregate demand,the appropriate fiscal policy would be for the government to

Spending for unemployment compensation and welfare benefits increase automatically

The national debt is a stock of IOUs created by the summation of annual deficit and surplus flows.

Current projections indicate that by the year 2030,there will be ________ tax-paying workers for every retiree collecting Social Security.

Interest payments on the national debt

Which of the following is an automatic stabilizer that reduces tax receipts during a recession?

Which of the following represents the use of fiscal policy to achieve a fiscal stimulus?

The debt would cease to grow if

Increases in deficit spending may be accompanied by

The Gramm-Rudman-Hollings Act of 1985 created a

U.S.Treasury bonds owned by U.S.households,institutions,and government entities are referred to as

The ratio of the debt to GDP is a measure of the burden the debt places on the economy.

The fiscal year for the federal government begins on

The size of the debt will begin to shrink if the federal government balances its budget.

The opportunity cost of government purchases is greater when financed by borrowing than when financed by taxes.

A budget surplus can be used to cut taxes or pay off old debt.

Fiscal restraint is

The In the News article in the text titled "Fiscal Policy in the Great Depression" discusses fiscal spending and taxation.During the Great Depression,the federal government pursued a policy of fiscal restraint that led to

What is the cyclical deficit,and when is it appropriate to have such a deficit? Why?

Outlays for unemployment compensation and welfare benefits