Exam 13: Federal Deficits, Surpluses, and the National Debt

The way to prevent the national debt from growing is for the budget not to be in deficit.

The federal budget process begins when federal agencies submit their budget requests to the:

Which of the following statements is true ?

Which of the following correctly describes the national debt?

The entire national debt is owed to U.S. citizens.

The national debt is unlikely to cause national bankruptcy because the:

The idea that a large national debt is "mortgaging the future of our children and grandchildren" is misleading because:

As the investment demand curve becomes steeper, the crowding-out effect will become smaller.

An increase in fiscal deficit spending financed by borrowing will increase the national debt.

Increased government borrowing stimulates private borrowing because of its effect on interest rates.

Between 1960 and 1997, the federal budget was never in surplus.

One of the problems with a growing national debt is the growing interest payments which must be paid on that debt.

Currently, the U.S. national debt is more than $20 trillion.

Which of the following statements about crowding out is false ?

"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:

If the fiscal year begins without a budget and Congress fails to pass continuing resolution, then:

Supply-siders feel that high levels of government spending:

The total accumulated debt of the federal government due to deficit spending is called the:

The federal government never has to pay off the national debt.

The national debt as a percentage of GDP has remained roughly constant since the end of World War II.