Exam 12: Federal Budgets and Public Policy.

U.S. interest payments on the federal debt as a percentage of federal outlays are lower today than in the 1990s.

In the short run, a federal budget deficit will most likely _____

If the federal government budget deficit increases, then interest rates will _____, the U.S. dollar will _____, and the foreign trade deficit will _____.

When budget deficits during recessions are covered by budget surpluses during expansions, it is called _____

American citizens who buy U.S. Treasury securities forgo _____ and are paid back in _____.

Which of the following correctly describes the factors that contributed to the change in the federal budget deficit between 1990 and 1998?

After 1996, interest payments began falling because of _____

The beginning of the formal budget process is signified by _____

Simplifying the budget document by concentrating only on major groupings and eliminating line items would _____

A biennial budget _____

What percentage of gross domestic product (GDP) is government outlays?

When a budget is not approved in time, _____

Before the Great Depression, federal deficits occurred primarily during wartime.

Which of the following countries has never defaulted on some national debt?

A major problem with the implementation of an annually balanced budget is that it _____

The federal budget is _____

If discretionary fiscal policy creates a federal budget deficit, the economy must be experiencing a decrease in output.

Outstanding liabilities of federal, state, and local governments minus government financial assets is _____

The budget deficit tends to decline during periods of recession and to increase during periods of economic recovery.

If aggregate output decreases, _____