Exam 12: Deficits and Debt

When the U.S.Treasury issues new bonds to replace bonds that have matured,it is engaging in

Crowding in is the result of

A budget deficit occurs when tax revenues are less than government spending.

Refer to Figure 12.1.Assuming the economy is on the production possibilities curve,crowding out suggests that an increase in government spending financed by internal borrowing would move the economy from point

Eventually,external debt must be repaid with the export of real goods and services.

Which of the following owns the largest portion of the U.S.national debt?

Which of the following results from a change in the business cycle,ceteris paribus?

Which of the following is not an explanation of why the Gramm-Rudman-Hollings Act proved inadequate in reducing the deficit?

The "real burden" of the debt is directly related to

Deficit spending results whenever the government

In contrast to the structural deficit,the cyclical deficit reflects

Which of the following contributed to the increase in the national debt during the 1990s?

The opportunity cost of the debt is the change in the mix of output that occurs when public sector spending crowds out private sector spending.

Interest on the government debt is an example of uncontrollable fiscal spending.

The national debt is

The burden of the debt is passed on to future generations when the debt is held by

The opportunity cost of the debt is

Suppose the economy is at a full-employment GDP of $1 trillion and the tax revenue received by the federal government is always one-fifth of GDP.If planned government expenditure is $300 billion,the structural

Which of the following is true about the U.S.federal government budget for the year 1998?

The fiscal year