Exam 13: Federal Budgets and Public Policy

If action by the President and Congress reduces the federal government budget deficit,then interest rates will __________,the U.S.dollar will __________,and the foreign trade deficit will __________.

Increases in the fraction of national debt held by foreigners __________ the burden of debt service on future generations __________.

Federal spending (including transfer payments),as a percent of GDP,

U.S.debt has never exceeded 100 percent of GDP because if it did so,the federal government would be bankrupt.

National debt held by the public includes public debt held by all of the following,except one.Which is the exception?

In Keynes' philosophy of government budgets,

During the Reagan presidency,tax rates were cut,government revenues fell below expectations,and there was a then-historic peacetime deficit.

The U.S.spent 3 percent of GDP building and maintaining the public infrastructure between 1950 and 1970.Since 1980,that share has

The crowding out of private investment is associated with

Discretionary policy deficits are associated with

If the U.S.government spent $20 million paying people to dig holes in 2005,and then spent $30 million paying the same people to fill the holes up again that same year,we would expect the net effect to be a(n)

Suggested Social Security reforms include

Transfer payments are included in the government budget deficit but not included in the government purchases component of GDP.

Approximately __________ of the budget falls into expenditure categories that are determined by existing law.

If government deficits stimulate the economy,

Approximately what percentage of the U.S.federal budget was used for Medicare payments (on the national debt)in 2012?

The largest category of federal government expenditures is

Social Security reforms adopted in 1983 included

If a budget is cyclically balanced,the government should run a surplus when the economy experiences a contractionary gap.

The federal budget experienced surpluses from