Chapter 18: Deficits, Surpluses, and the Public Debt

The Federal budget deficit is found by: A) subtracting government tax revenues plus government borrowing from government spending in a particular year. B) subtracting government tax revenues from government spending in a particular year. C) cumulating the differences between government spending and tax revenues over all years since the nation's founding. D) subtracting government revenues from the noninvestment-type government spending in a particular year.

B

The amount by which government expenditures exceed revenues during a particular year is the: A) public debt. B) budget deficit. C) full-employment. D) GDP gap.

B

The amount by which Federal tax revenues exceed Federal government expenditures during a particular year is the: A) Federal reserve. B) budget deficit. C) budget surplus. D) public debt.

C

The public debt is the amount of money that: A) state and local governments owe to the Federal government. B) Americans owe to foreigners. C) the Federal government owes to holders of U.S. securities. D) the Federal government owes to taxpayers.

C

The Federal budget surplus is found by: A) subtracting government revenue plus government borrowing from government spending in a particular year. B) cumulating the difference between government spending and tax revenues over all years since the nation's founding. C) subtracting government revenues from government spending on noninvestment goods in a particular year. D) subtracting government spending from government tax revenue in a particular year.

D

The U.S. public debt: A) refers to the debts of all units of government--Federal, state, and local. B) consists of the total debt of U.S. households, businesses, and government. C) refers to the collective amount that U.S. citizens and businesses owe to foreigners. D) consists of the historical accumulation of all Federal government deficits and surpluses.

D

The public debt is held as: A) U.S. securities, corporate bonds, and common stock. B) Federal Reserve Notes. C) U.S. gold certificates. D) Treasury bills, Treasury notes, Treasury bonds, and U.S. savings bonds.

D