Exam 14: Deficit Spending and the Public Debt

Suppose that the federal government had a budget deficit of $80 billion in year 1 and $10 billion in year 2, but it had budget surpluses of $140 billion in year 3 and $20 billion in year 4. Also assume that the government uses any budget surpluses to pay down the public debt. At the end of these four years, the Federal government's public debt would have

To compare the net public debt of various countries, the debt has to be compared to

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

Which of the following is NOT an example of a flow variable?

In the long run, a higher government budget deficit causes

The difference between gross public debt and net public debt is that

In the long run, what effect does a government's deficit spending have on equilibrium real Gross Domestic Product (GDP)?

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

Net public debt is equal to

To evaluate relative changes in the net public debt, we must

Which of the following is the best measure of the total amount that the federal government owes to private owners of U.S. Treasury securities?

A government budget surplus is

-Suppose that initially there is no public debt. Using the above table, the public debt over this four-year period would have

Stocks change ________ whereas flows relate to ________.

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

In the current year, a nation's government spending equals $100 trillion and its revenues are $130 trillion. Which of the following is TRUE?

What is the difference between the short run and the long run when there is full employment and the government engages in deficit spending?

Since 1940, the U.S. government has experienced

Noncontrollable expenditures are called "noncontrollable" because

Which of the following is TRUE about how trade deficits and government budget deficits are related?