Exam 33: Budget Deficits in the Short and Long Run

Crowding out can best be defined as

The principal difference between conventional accounting and economic analysis of inflation is that

If the inflation rate falls, what will happen to the budget deficit?

If the national debt is owed to foreigners,

As GDP falls, automatic stabilizers run the federal budget in a deficit direction.

The crowding-out effect is likely to be the strongest during periods of

The budget deficit is the amount by which a government's expenditures exceed its receipts.

Monetizing the debt is a way of turning debt into money and reducing the burden of the debt.

In 2008 and 2009, the budget deficit increased substantially because of

A budget deficit will be least inflationary if the aggregate

The decisions on the part of the government to increase spending by $5 billion will have the largest impact on aggregate demand when the spending is financed by the sale of bonds to

Monetizing the deficit contributes to the inflationary pressures that are already present in the economy.

The structural deficit does not depend on the state of the economy.

With no change in fiscal policy, the budget

The U.S.national debt at the end of 2014 was about $30 trillion.

In 2010 and 2011, many observers were worried that the

The "crowding out" effect states that government spending pushes up interest rates and reduces private investment spending.

Until the 1980s, most of the national debt was

Monetizing the debt has what effect on the economy?

The crowding-in effect results from