Exam 14: Deficit Spending and the Public Debt

What are the macroeconomic consequences of a budget deficit when the economy is operating at full employment? Be sure to discuss the effects in the short-run and in the long-run.

Since the late 1980s, the share of the net public debt owed to foreign interests has

If the public debt increased by the same amount each year during the past three years, then

-Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4?

Which of the following statements is true about the public debt and future generations?

Which of the following statements is true about the difference between the public debt and the government budget deficit?

A government balanced budget is

A trade surplus occurs when

If the government spends exactly what it receives in taxes during a given interval, then the result is

When foreign residents buy U.S. Treasury securities to finance the budget deficit,

If the government has no debt initially, but then has annual revenues of $10 billion per year for 4 years and annual expenditures of $10.5 billion per year for 4 years, then the government has

According to the text, the net public debt to Gross Domestic Product (GDP) ratio is currently about

Which of the following is the best statement about how the amount of the net public debt that a typical individual owes to the holders of the debt has varied in the recent past?

Which of the following is a stock variable?

As a possible approach to eliminating the government budget deficit, increasing taxes on the rich only would

Which of the following is true of the U.S. trade balance and the federal government budget?

Historical evidence seems to indicate that

Net public debt is

Which of the following statements about the budget deficit is true?

If the net public debt declined last year, then which of the following most likely occurred during that year?