Question 1

One way of improving the federal government budget process is to _____

Accepted Answer

A)  switch to a two-year, or biennial, budget. 
B)  remove the Council of Economic Advisers from the process. 
C)  provide a detailed budget by focusing on all groupings and line items. 
D)  provide for automatic annual increases in all budget categories. 
E)  eliminate the role of congressional committees in the process. 
A)  switch to a two-year, or biennial, budget. 
B)  remove the Council of Economic Advisers from the process. 
C)  provide a detailed budget by focusing on all groupings and line items. 
D)  provide for automatic annual increases in all budget categories. 
E)  eliminate the role of congressional committees in the process.

Question 2

Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____.

Accepted Answer

A)  decrease; because it is easier for the borrowing nation to default on the debt 
B)  decrease; but may make the country more vulnerable to foreign intervention 
C)  decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically 
D)  increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside 
E)  increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out 
A)  decrease; because it is easier for the borrowing nation to default on the debt 
B)  decrease; but may make the country more vulnerable to foreign intervention 
C)  decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically 
D)  increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside 
E)  increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out

Question 3

Which of the following is true of the federal budget?

Accepted Answer

A)  The federal budget is a plan that describes a government's monetary policy for the current financial year. 
B)  The federal budget is a plan that describes a government's fiscal policy for the current financial year. 
C)  The federal budget is a plan that describes the president's take on the economy. 
D)  The federal budget is a plan for federal government outlays and revenues for a specified period, usually a year. 
E)  The federal budget is a plan that describes the eligibility criteria of the major entitlement programs taken up by Congress for the current financial year. 
A)  The federal budget is a plan that describes a government's monetary policy for the current financial year. 
B)  The federal budget is a plan that describes a government's fiscal policy for the current financial year. 
C)  The federal budget is a plan that describes the president's take on the economy. 
D)  The federal budget is a plan for federal government outlays and revenues for a specified period, usually a year. 
E)  The federal budget is a plan that describes the eligibility criteria of the major entitlement programs taken up by Congress for the current financial year.

One way of improving the federal government budget process is to _____

Increases in the fraction of national debt held by foreigners _ the burden of debt service on future generations _.

Which of the following is true of the federal budget?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 12: Federal Budgets and Public Policy.

One way of improving the federal government budget process is to _____

Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____.

Which of the following is true of the federal budget?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Increases in the fraction of national debt held by foreigners _ the burden of debt service on future generations _.