Question 1

The annual shortfall when federal revenues are less than expenditures is known as which of the following?

Accepted Answer

A)  the balance of payments 
B)  the budget deficit 
C)  the national debt 
D)  the trade deficit 
A)  the balance of payments 
B)  the budget deficit 
C)  the national debt 
D)  the trade deficit

Question 2

What is a primary tool that monetary policy uses to affect the overall economy?

Accepted Answer

A)  tax rates 
B)  foreign monetary investment 
C)  government spending 
D)  the discount rate 
A)  tax rates 
B)  foreign monetary investment 
C)  government spending 
D)  the discount rate

Question 3

One reason for the increase in health care costs is the aging population in the United States.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true about Social Security?

Accepted Answer

A)  It provides benefits to retirees. 
B)  It is a means-tested program. 
C)  It is only available to the very wealthy. 
D)  It is supported by property taxes. 
A)  It provides benefits to retirees. 
B)  It is a means-tested program. 
C)  It is only available to the very wealthy. 
D)  It is supported by property taxes.

Question 5

Which of these statements best describes the influence of adjustments to the discount rate made by the Federal Reserve?

Accepted Answer

A)  They always lead to lower rates of marginal taxes. 
B)  They can lead to higher unemployment in years of budget deficits. 
C)  They can spur economic growth by increasing the cost of money for business. 
D)  They can spur economic growth by increasing the available money supply. 
A)  They always lead to lower rates of marginal taxes. 
B)  They can lead to higher unemployment in years of budget deficits. 
C)  They can spur economic growth by increasing the cost of money for business. 
D)  They can spur economic growth by increasing the available money supply.

Question 6

Which of the following is a disadvantage of addressing an economic downturn through fiscal policy?

Accepted Answer

A)  Fiscal policy results in layoffs of government employees. 
B)  Deficit spending has long-term consequences. 
C)  It frequently results in tax increases. 
D)  It tends to benefit the wealthy more than the poor and the working class. 
A)  Fiscal policy results in layoffs of government employees. 
B)  Deficit spending has long-term consequences. 
C)  It frequently results in tax increases. 
D)  It tends to benefit the wealthy more than the poor and the working class.

Question 7

Discuss government regulation in the United States during the nineteenth century.

Accepted Answer

An ideal response will:
1.Discuss the be

Question 8

What do Medicare,Medicaid,and Social Security have in common?

Accepted Answer

A)  They are all health care programs. 
B)  They are all entitlement programs. 
C)  They are all programs that only the elderly are eligible for. 
D)  They all provide food stamps to people in poverty. 
A)  They are all health care programs. 
B)  They are all entitlement programs. 
C)  They are all programs that only the elderly are eligible for. 
D)  They all provide food stamps to people in poverty.

Question 9

The federal government uses fiscal policy when it decreases __________ in an attempt to spur spending and stimulate the economy.

Accepted Answer

The answer of The federal government uses fiscal policy when...

Question 10

Which of these is most consistent with the philosophy of Keynesianism?

Accepted Answer

A)  increasing the discount rate 
B)  increasing the debt owned by foreign countries 
C)  increasing the money supply 
D)  the 2009 American Recovery and Reinvestment Act 
A)  increasing the discount rate 
B)  increasing the debt owned by foreign countries 
C)  increasing the money supply 
D)  the 2009 American Recovery and Reinvestment Act

Question 11

Keynesians in Congress would support increasing __________ as a means to address high levels of unemployment.

Accepted Answer

The answer of Keynesians in Congress would support increasing __________...

Question 12

U.S.monetary policy involves which of the following?

Accepted Answer

A)  import and export policies 
B)  the discount rate and the money supply 
C)  supply-side economics 
D)  the national debt and the annual deficit 
A)  import and export policies 
B)  the discount rate and the money supply 
C)  supply-side economics 
D)  the national debt and the annual deficit

Question 13

Why do adjustments to the discount rate by the Federal Reserve Board matter?

Accepted Answer

An ideal response will:
1.Explain the ro

Question 14

The money supply __________ when the Federal Reserve Board increases the discount rate.

Accepted Answer

The answer of The money supply __________ when the Federal...

Question 15

In an economic slowdown,Keynesian economic policy would advocate __________.

Accepted Answer

A)  increasing inflation 
B)  increasing government spending 
C)  decreasing the money supply 
D)  increasing the unemployment rate 
A)  increasing inflation 
B)  increasing government spending 
C)  decreasing the money supply 
D)  increasing the unemployment rate

Question 16

Lowering the discount rate would have which of the following effects?

Accepted Answer

A)  It would decrease the overall rate of taxation. 
B)  It would discourage banks from increasing their borrowing from the Federal Reserve. 
C)  It would encourage banks to borrow more and to extend more loans at lower rates. 
D)  It would increase the amount of federal bonds sold to foreign countries. 
A)  It would decrease the overall rate of taxation. 
B)  It would discourage banks from increasing their borrowing from the Federal Reserve. 
C)  It would encourage banks to borrow more and to extend more loans at lower rates. 
D)  It would increase the amount of federal bonds sold to foreign countries.

Question 17

The main goal of fiscal policy is __________.

Accepted Answer

A)  to ensure that money is available to state governments for capital projects 
B)  to pay down the federal debt 
C)  to increase exports into the United States 
D)  to stimulate or slow down economic growth 
A)  to ensure that money is available to state governments for capital projects 
B)  to pay down the federal debt 
C)  to increase exports into the United States 
D)  to stimulate or slow down economic growth

Question 18

What is a government program called that provides benefits to all citizens who meet eligibility requirements?

Accepted Answer

A)  a basic program 
B)  an entitlement program 
C)  an envelopment program 
D)  a recessionary program 
A)  a basic program 
B)  an entitlement program 
C)  an envelopment program 
D)  a recessionary program

Question 19

The money supply is determined by fiscal policy.

Accepted Answer

A) True 
 B)False

Question 20

The total market value of all goods and services produced in an area during a year is termed which of the following?

Accepted Answer

A)  national income quotient 
B)  gross domestic product 
C)  maximum national product 
D)  minimum domestic product 
A)  national income quotient 
B)  gross domestic product 
C)  maximum national product 
D)  minimum domestic product

The annual shortfall when federal revenues are less than expenditures is known as which of the following?

What is a primary tool that monetary policy uses to affect the overall economy?

One reason for the increase in health care costs is the aging population in the United States.

Which of the following is true about Social Security?

Which of these statements best describes the influence of adjustments to the discount rate made by the Federal Reserve?

Which of the following is a disadvantage of addressing an economic downturn through fiscal policy?

Discuss government regulation in the United States during the nineteenth century.

What do Medicare,Medicaid,and Social Security have in common?

The federal government uses fiscal policy when it decreases __________ in an attempt to spur spending and stimulate the economy.

Which of these is most consistent with the philosophy of Keynesianism?

Keynesians in Congress would support increasing __________ as a means to address high levels of unemployment.

U.S.monetary policy involves which of the following?

Why do adjustments to the discount rate by the Federal Reserve Board matter?

The money supply __________ when the Federal Reserve Board increases the discount rate.

In an economic slowdown,Keynesian economic policy would advocate __________.

Lowering the discount rate would have which of the following effects?

The main goal of fiscal policy is __________.

What is a government program called that provides benefits to all citizens who meet eligibility requirements?

The money supply is determined by fiscal policy.

The total market value of all goods and services produced in an area during a year is termed which of the following?

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Exam 17: Economic Policy

The annual shortfall when federal revenues are less than expenditures is known as which of the following?

What is a primary tool that monetary policy uses to affect the overall economy?

One reason for the increase in health care costs is the aging population in the United States.

Which of the following is true about Social Security?

Which of these statements best describes the influence of adjustments to the discount rate made by the Federal Reserve?

Which of the following is a disadvantage of addressing an economic downturn through fiscal policy?

Discuss government regulation in the United States during the nineteenth century.

What do Medicare,Medicaid,and Social Security have in common?

The federal government uses fiscal policy when it decreases __________ in an attempt to spur spending and stimulate the economy.

Which of these is most consistent with the philosophy of Keynesianism?

Keynesians in Congress would support increasing __________ as a means to address high levels of unemployment.

U.S.monetary policy involves which of the following?

Why do adjustments to the discount rate by the Federal Reserve Board matter?

The money supply __________ when the Federal Reserve Board increases the discount rate.

In an economic slowdown,Keynesian economic policy would advocate __________.

Lowering the discount rate would have which of the following effects?

The main goal of fiscal policy is __________.

What is a government program called that provides benefits to all citizens who meet eligibility requirements?

The money supply is determined by fiscal policy.

The total market value of all goods and services produced in an area during a year is termed which of the following?

American Government: Roots, context, and Culture

The Constitution

The Federal System

Civil Liberties

Civil Rights

Congress

The Presidency

The Executive Branch and the Federal Bureaucracy

The Judiciary

Public Opinion and Political Socialization

Political Parties

Elections and Voting

The Campaign Process

The News Media

Interest Groups

Domestic Policy

Foreign and Defense Policy

Filters