Question 1

-As a result of government borrowing,private sector borrowing is

Accepted Answer

A)  unaffected. 
B)  reduced by $100 billion. 
C)  reduced by $200 billion. 
D)  reduced by $300 billion. 
E)  reduced by $500 billion. 
A)  unaffected. 
B)  reduced by $100 billion. 
C)  reduced by $200 billion. 
D)  reduced by $300 billion. 
E)  reduced by $500 billion.

Question 2

An excess of government expenditures over tax receipts

Accepted Answer

A)  is called a surplus. 
B)  is a means of reducing the national debt. 
C)  is always desirable. 
D)  can lead to prolonged depression. 
E)  can stimulate the economy and raise GDP. 
A)  is called a surplus. 
B)  is a means of reducing the national debt. 
C)  is always desirable. 
D)  can lead to prolonged depression. 
E)  can stimulate the economy and raise GDP.

Question 3

The ways the federal government can finance its expenditures

Accepted Answer

A)  require selling the Treasury's gold holdings. 
B)  number only two: raising and lowering taxes. 
C)  are raising taxes, borrowing, and creating new money. 
D)  require exporting more than it imports. 
E)  all lead to an increase in the national debt. 
A)  require selling the Treasury's gold holdings. 
B)  number only two: raising and lowering taxes. 
C)  are raising taxes, borrowing, and creating new money. 
D)  require exporting more than it imports. 
E)  all lead to an increase in the national debt.

Question 4

The size of the structural deficit tells us

Accepted Answer

A)  what increase to expect in the actual deficit over the next fiscal period. 
B)  what relative impact current fiscal policy is having on the economy. 
C)  what size tax increase is needed to balance the budget. 
D)  the best way to finance the current deficit. 
E)  how much of the budget should be financed by borrowing and how much by raising taxes. 
A)  what increase to expect in the actual deficit over the next fiscal period. 
B)  what relative impact current fiscal policy is having on the economy. 
C)  what size tax increase is needed to balance the budget. 
D)  the best way to finance the current deficit. 
E)  how much of the budget should be financed by borrowing and how much by raising taxes.

Question 5

The president submits his budget for the next fiscal year to Congress in

Accepted Answer

A)  January. 
B)  March. 
C)  June. 
D)  September. 
E)  December. 
A)  January. 
B)  March. 
C)  June. 
D)  September. 
E)  December.

Question 6

The size of the structural deficit

Accepted Answer

A)  can be used to evaluate the extent to which government fiscal policy is promoting economic stability. 
B)  generally exceeds the actual budget surplus or deficit in a given fiscal year. 
C)  generally equals actual budgetary deficits and surpluses. 
D)  is greater during those years when a full-employment equilibrium GDP prevails. 
E)  automatically nets out to zero over the course of the business cycle. 
A)  can be used to evaluate the extent to which government fiscal policy is promoting economic stability. 
B)  generally exceeds the actual budget surplus or deficit in a given fiscal year. 
C)  generally equals actual budgetary deficits and surpluses. 
D)  is greater during those years when a full-employment equilibrium GDP prevails. 
E)  automatically nets out to zero over the course of the business cycle.

Question 7

Over the past 50 years,the prevailing national attitude toward the government budget has been one

Accepted Answer

A)  that consistently advocated surpluses. 
B)  that supported increasingly larger surpluses. 
C)  that paid increasing lip service to the desirability of growth deficits. 
D)  that changed from favoring annually balanced budgets to favoring a budget balanced over the business cycle back to favoring annually balanced budgets. 
E)  of indifference, since it is clear that the government budget has no effect on economic activity. 
A)  that consistently advocated surpluses. 
B)  that supported increasingly larger surpluses. 
C)  that paid increasing lip service to the desirability of growth deficits. 
D)  that changed from favoring annually balanced budgets to favoring a budget balanced over the business cycle back to favoring annually balanced budgets. 
E)  of indifference, since it is clear that the government budget has no effect on economic activity.

Question 8

The U.S.government's fiscal year runs from

Accepted Answer

A)  January 1 to December 31. 
B)  April 15 to April 14. 
C)  June 1 to May 31. 
D)  October 1 to September 30. 
E)  December 1 to November 30. 
A)  January 1 to December 31. 
B)  April 15 to April 14. 
C)  June 1 to May 31. 
D)  October 1 to September 30. 
E)  December 1 to November 30.

-As a result of government borrowing,private sector borrowing is

An excess of government expenditures over tax receipts

The ways the federal government can finance its expenditures

The size of the structural deficit tells us

The president submits his budget for the next fiscal year to Congress in

The size of the structural deficit

Over the past 50 years,the prevailing national attitude toward the government budget has been one

The U.S.government's fiscal year runs from

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 24: Surpluses,deficits,public Debt,and the Federal Budget

-As a result of government borrowing,private sector borrowing is

An excess of government expenditures over tax receipts

The ways the federal government can finance its expenditures

The size of the structural deficit tells us

The president submits his budget for the next fiscal year to Congress in

The size of the structural deficit

Over the past 50 years,the prevailing national attitude toward the government budget has been one

The U.S.government's fiscal year runs from

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters