Chapter 13

in surplus

between 1998 and 2001, the federal budget was

zero,partial,complete

the crowding out effect can be

raises taxes,print money, refinance its debt

the national debt is unlikely to cause national bankruptcy because the federal government can

national debt can be refinanced by issuing new bonds

the national debt it unlikely to cause national bankruptcy because the

national debt

the sum of past federal budget deficits is the

treasury bills, treasury notes, treasury bonds

to finance a federal budget deficit, the U.S treasury borrows by selling

ww2

when measured as a percentage of GDP, the U.S national debt reached its highest levels as a result of

bonds owned by the banks and insurance companies, bonds owned by the social security administration, bonds owned by private individuals

which of the following U.S treasury securities represents ownership of the national debt?

the size of the national debt decreased steadily after World War 2, the national debt increases in size whenever the federal government has a surplus budget, currency, the size of the national debt is about the same size as it was during ww2

which of the following statements is false

the current U.S national debt is over $15 trillion

which of the following statements is true

investors who buy U.S treasury bills,bonds, and notes

with regard to the national debt, to whom does the federal government owe money?

other U.S citizens, bond holders

most of the U.S national debt is owed to _________. Thus, a rising national debt implies that there will be a future redistribution of income and wealth in favor of __________.

continuing resolution

if congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if Congress has passed a

the federal government shuts down

if the fiscal year begins without a budget and congress fails to pass continuing resolution, then

1 percent

in recent years, net interest on the national debt paid by the federal government as a percentage of GDP was equal to approximately

borrowing by the federal government raises interest rates and causes firms to invest less

"crowding out" refers to the situation in which

are used for public infrastructure will of set any decline in business investment

"crowding-in " refers to the federal government deficits that

increase the national debt, increase interest rates, decrease borrowing by households and businesses, be less effective in stimulating the economy than the spending multiplies implies because of crowding out

an increase in our federal government's budget deficit will likely

slightly larger

compared to the united kingdom, the national debt as a percentage of GDP in the united states is

February

each year, the president must submit a budget proposal to congress by,