eco 231 quiz chp 23

Each year, the president must submit a budget proposal to Congress by:

January.

What is the difference between the federal budget deficit and the national debt?

The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses.

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

World War II.

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:

continuing resolution.

If the national debt rises to the debt ceiling and there is currently a budget ________, the Congress and the President must agree to ________ the debt ceiling or else the federal government will have insufficient funds to pay its bills and will be forced to shut down.

deficit, raise

External debt is that portion of the national debt:

held by foreigners.

If the federal government were to run a budget deficit, this would:

increase the size of the national debt.

The national debt is unlikely to cause national bankruptcy because the:

national debt can be refinanced by issuing new bonds.

The sum of past federal budget deficits increases the:

national debt.

The sum of past federal budget deficits is the:

national debt.

The total accumulated debt of the federal government due to deficit spending is called the:

national debt.

If the federal government has a budget surplus, then the national debt is:

reduced.

The national debt is best described as the:

sum of all federal budget deficits, past and present.

If the federal government runs a budget _______, then the national debt becomes __________.

surplus, smaller

The national debt is:

the cumulative effect of all past budget deficits and surpluses of the federal government.

If the fiscal year begins without a budget and Congress fails to pass continuing resolution, then:

the federal government shuts down.

"Crowding in" refers to federal government deficits:

used for public infrastructure that will offset any decline in business investment.

Which of the following owns the largest proportion of the national debt?

Federal, state, and local governments and the Federal Reserve.

Which of the following groups analyzes federal budgets proposals?

The Congressional Budget Office.

"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:

all of these.