Question 1

In 2001 and 2003, what economic policy did President Bush sign into law?

Accepted Answer

A)  tax cuts to boost the economy 
B)  increased money supply to boost the economy 
C)  decreased government spending to slow down the economy 
D)  higher interest rates to slow down the economy 
A)  tax cuts to boost the economy 
B)  increased money supply to boost the economy 
C)  decreased government spending to slow down the economy 
D)  higher interest rates to slow down the economy

Question 2

In the U.S., fiscal policy is implemented by the Council of Economic Advisors and the Federal Reserve System.

Accepted Answer

A) True 
 B)False

Question 3

Fiscal policy is enacted by the

Accepted Answer

A)  Federal Reserve System 
B)  Council of Economic Advisors 
C)  Federal Open Market Committee 
D)  Congress and the president together 
A)  Federal Reserve System 
B)  Council of Economic Advisors 
C)  Federal Open Market Committee 
D)  Congress and the president together

Question 4

The problem with eliminating all federal debt would be that

Accepted Answer

A)  massive inflation would occur as the prices of stocks rose 
B)  living standards would rise 
C)  investors would have a harder time finding safe assets in which to place their money 
D)  the Federal Reserve will be eliminated as well 
A)  massive inflation would occur as the prices of stocks rose 
B)  living standards would rise 
C)  investors would have a harder time finding safe assets in which to place their money 
D)  the Federal Reserve will be eliminated as well

Question 5

The difference between the federal deficit and the federal debt is

Accepted Answer

A)  the inflation rate 
B)  the deficit is measured year-to-year, while the debt is a cululative total 
C)  the deficit is measured in dollars, while the debt is measured by an interest paid 
D)  none; there is no difference 
A)  the inflation rate 
B)  the deficit is measured year-to-year, while the debt is a cululative total 
C)  the deficit is measured in dollars, while the debt is measured by an interest paid 
D)  none; there is no difference

Question 6

The U.S. government has financed its deficits primarily by borrowing from

Accepted Answer

A)  the U.S. public 
B)  foreign investors 
C)  the Federal Reserve 
D)  the Federal Deposit Insurance Corporation 
A)  the U.S. public 
B)  foreign investors 
C)  the Federal Reserve 
D)  the Federal Deposit Insurance Corporation

Question 7

Most economists agree that the amount of the U.S. government's debt by itself is the best indicator of the debt's burden.

Accepted Answer

A) True 
 B)False

Question 8

Most of the U.S. government's debt is owned by foreigners who purchase the securities issued by the Treasury.

Accepted Answer

A) True 
 B)False

Question 9

Because of the crowding-out effect, an expansionary fiscal policy will have stronger expects than anticipated.

Accepted Answer

A) True 
 B)False

Question 10

Tax revenue equals

Accepted Answer

A)  tax rate x tax receipts 
B)  tax rate/taxable income 
C)  tax rate x taxable income 
D)  tax rate/tax receipts 
A)  tax rate x tax receipts 
B)  tax rate/taxable income 
C)  tax rate x taxable income 
D)  tax rate/tax receipts

In 2001 and 2003, what economic policy did President Bush sign into law?

In the U.S., fiscal policy is implemented by the Council of Economic Advisors and the Federal Reserve System.

Fiscal policy is enacted by the

The problem with eliminating all federal debt would be that

The difference between the federal deficit and the federal debt is

The U.S. government has financed its deficits primarily by borrowing from

Most economists agree that the amount of the U.S. government's debt by itself is the best indicator of the debt's burden.

Most of the U.S. government's debt is owned by foreigners who purchase the securities issued by the Treasury.

Because of the crowding-out effect, an expansionary fiscal policy will have stronger expects than anticipated.

Tax revenue equals

Scarcity and Choice

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

The Business Cycle, Unemployment, and Inflation

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters

Exam 13: Fiscal Policy and the Federal Budget

In 2001 and 2003, what economic policy did President Bush sign into law?

In the U.S., fiscal policy is implemented by the Council of Economic Advisors and the Federal Reserve System.

Fiscal policy is enacted by the

The problem with eliminating all federal debt would be that

The difference between the federal deficit and the federal debt is

The U.S. government has financed its deficits primarily by borrowing from

Most economists agree that the amount of the U.S. government's debt by itself is the best indicator of the debt's burden.

Most of the U.S. government's debt is owned by foreigners who purchase the securities issued by the Treasury.

Because of the crowding-out effect, an expansionary fiscal policy will have stronger expects than anticipated.

Tax revenue equals

Scarcity and Choice

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

The Business Cycle, Unemployment, and Inflation

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters