Exam 12: Deficits and Debt

The risk of crowding out is greater the closer the economy is to full employment.

Which of the following statements about the U.S.national debt is not correct?

Most developed countries experience deficit spending.

Explain the difference between discretionary and automatic spending by the government.

Policies designed to pay off the national debt will result in:

The U.S.federal debt that accumulated between 1970 and 2010

The true burden of the internal debt is the opportunity cost of the activities financed by the debt,and the burden occurs when the debt-financed activity takes place.

Internal ownership of the national debt occurs when U.S.Treasury bonds are purchased by all of the following except

Because the government must pay interest on the public debt,its ability to balance the budget or fund public sector activities is reduced.

According to Keynes,an unbalanced budget is appropriate in all of the following situations except when

Which of the following policies will reduce the budget deficit while achieving greater fiscal restraint?

The U.S.private sector holds about ________ percent of outstanding U.S.Treasury bonds.

When deficits are run continuously with a constant nominal interest rate,nominal interest payments on the total nominal debt will become smaller relative to future deficits,ceteris paribus.

The only way to reduce the national debt is to run budget surpluses.

The fiscal agent of the U.S.government is the

At the time it occurs,external financing of the debt allows the economy to

Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?

Which of the following is not an automatic stabilizer?

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

The U.S.government incurred a national debt for the first time during