Exam 12: Federal Budgets and Public Policy.

Researchers believe that the economy grows at least one percentage point less annually when _____

State and local governments issue bonds to fund capital projects, such as schools and infrastructure.

In the United States, since the Great Depression, the federal government has _____

Which of the following is not a possible implication of federal budget deficits?

One way to measure national debt over time is relative to _____

If the functional finance approach to federal budgeting is followed, the federal government's budget deficit should be zero.

The key link between the twin deficits involves _____

All of the following programs were exempt from sequestration except for _____

In 1981, U.S. policy makers predicted a balanced budget, as _____

Identify the incorrect statement about the U.S. federal deficit.

What did indebted countries such as Greece, Ireland, Spain, and Portugal receive after the financial crisis of 2008?

In order for the government to increase spending, it must increase taxes to finance that spending.

Other things equal, an increase in defense spending will increase the budget deficit.

Which of the following is not a form of crowding out?

If an increase in the federal deficit stimulates an economy, _____

Which of the following countries hold the most U.S. federal debt?

Government deficits of one generation cannot affect the standard of living of the next generation.

The entire U.S. federal budget process, beginning with the delivery of the president's budget to Congress and ending with the beginning of the fiscal year, takes about _____.

Crowding out refers to the effect that deficits have on private investment spending.

Foreign buyers of U.S. debt reduce the amount of _____ that Americans must _____ to finance a deficit.