ECO 110- Quiz 4

d

The national debt is the a. amount by which revenues fall short of projections. b. amount by which expenditures exceed revenues. c. amount by which revenues exceed expenditures. d. total amount owed by the federal government.

d

Nondiscretionary Fiscal Policy works by having a. progressive income tax rates take a portion of increased income thereby dampening periods of growth. b. welfare programs reduce spending on people when they have increased incomes, thereby dampening periods of economic growth. c. Congress and the President agree upon a tax cut to stimulate growth. d. both progressive income tax rates take a portion of increased income and welfare programs reduce spending on people when they have increased incomes thereby dampening periods of economic growth.

b

Projections of the trajectory of discretionary relative to mandatory spending made in 2016 had a. discretionary spending's portion growing. b. mandatory spending's portion growing. c. both mandatory and discretionary spending remaining relatively constant. d. the two remaining equal for the next decade.

c

Federal Spending in 2016 was a. $400 trillion. b. $40 trillion. c. $4 trillion. d. $4 billion.

a

An argument has been made that the shrinking deficits of the 1990s were attributable to the a. peace dividend that resulted from the end of the Cold War. b. bailout of the savings and loans. c. Cold War. d. Gulf War.

d

An increasing portion of the U.S. national debt is held by a. the public. b. the Federal Reserve. c. the public and the Federal Reserve. d. government trust funds

c

Compared to Italy and Japan in recent years, the debt as a percentage of GDP in the US is a. slightly smaller. b. roughly equal. c. substantially smaller. d. substantially greater.

a

Which of the following programs is off-budget? a. Social Security b. Defense c. Student loans d. Interest on the debt

a

Programs such as Social Security and Medicare a. do not require re-authorization. b. can be cut by the President without congressional approval. c. have to be re-authorized every year and can be cut by the President without congressional approval. d. have to be re-authorized every year.