Question 1

In 2011 and 2012, the House of Representatives passed budgets that promised spending reductions of

Accepted Answer

A)  $5 trillion a year 
B)  $5 trillion over a number of years 
C)  $1 trillion a year 
D)  $10 trillion over a number of years 
A)  $5 trillion a year 
B)  $5 trillion over a number of years 
C)  $1 trillion a year 
D)  $10 trillion over a number of years B

Question 2

According to some conservatives, government spending on useful activities reduces private investment because the government "pre-empts" private opportunities.

Accepted Answer

A) True 
 B)False  True

Question 3

Approximately what percent of the National Debt was owned within the United States government in 2011?

Accepted Answer

A)  50% 
B)  27% 
C)  17% 
D)  7% 
A)  50% 
B)  27% 
C)  17% 
D)  7% B

Question 4

The National Debt of the United States in 2011 was

Accepted Answer

A)  $10 trillion 
B)  $12 trillion 
C)  $15 trillion 
D)  $20 trillion 
A)  $10 trillion 
B)  $12 trillion 
C)  $15 trillion 
D)  $20 trillion

Question 5

The major points of the Conservative views presented in the chapter include five arguments. Which of the following three are included:

Accepted Answer

A)  Deficit spending crowds out private investment, cutting deficits causes recessions, increasing deficit spending causes inflation. 
B)  Deficit spending crowds out private investment, government spending is mostly wasteful, increasing deficit spending causes inflation. 
C)  Deficit spending crowds out private investment, government spending leads to no net increase in GDP, government spending improves the quality of life 
D)  Deficit spending leads to increases in private investment, government spending leads to no net increase in GDP, increased deficit spending causes inflation. 
A)  Deficit spending crowds out private investment, cutting deficits causes recessions, increasing deficit spending causes inflation. 
B)  Deficit spending crowds out private investment, government spending is mostly wasteful, increasing deficit spending causes inflation. 
C)  Deficit spending crowds out private investment, government spending leads to no net increase in GDP, government spending improves the quality of life 
D)  Deficit spending leads to increases in private investment, government spending leads to no net increase in GDP, increased deficit spending causes inflation.

Question 6

The National Debt is different from a private personal debt because

Accepted Answer

A)  The federal government can print dollars, you cannot 
B)  Much of the national debt is owed to people within the United States, thus "we owe it to ourselves" 
C)  The federal government can tax its citizens to service its debt, people have to earn money to service their own debt 
D)  All of the above 
A)  The federal government can print dollars, you cannot 
B)  Much of the national debt is owed to people within the United States, thus "we owe it to ourselves" 
C)  The federal government can tax its citizens to service its debt, people have to earn money to service their own debt 
D)  All of the above

Question 7

The rise in deficit spending between 2008 and 2011 is evidence against the "crowding out" argument because

Accepted Answer

A)  Interest rates rose and investment fell 
B)  Interest rates did not rise 
C)  Interest rates remained the same and investment went up 
D)  The period between 2008 and 2011 was evidence FOR the "crowding out" argument. 
A)  Interest rates rose and investment fell 
B)  Interest rates did not rise 
C)  Interest rates remained the same and investment went up 
D)  The period between 2008 and 2011 was evidence FOR the "crowding out" argument.

Question 8

Individuals and governments have very different experiences "rolling over" outstanding debt because:

Accepted Answer

A)  Individuals die and governments can live forever 
B)  Individuals much earn income to service debt, governments can tax their citizens 
C)  Individuals cannot issue their own currencies, governments can 
D)  All of the above 
A)  Individuals die and governments can live forever 
B)  Individuals much earn income to service debt, governments can tax their citizens 
C)  Individuals cannot issue their own currencies, governments can 
D)  All of the above

Question 9

The National Debt of the United States in 2011 was (approximately) what percent of GDP

Accepted Answer

A)  It was more than GDP 
B)  It was 50% of GDP 
C)  It was 80% of GDP 
D)  It was 100% of GDP 
A)  It was more than GDP 
B)  It was 50% of GDP 
C)  It was 80% of GDP 
D)  It was 100% of GDP

Question 10

2012 presidential candidate Mitt Romney was in favor of cutting government spending in every area except:

Accepted Answer

A)  Health care spending 
B)  Nutrition programs 
C)  Infrastructure spending 
D)  Military spending 
A)  Health care spending 
B)  Nutrition programs 
C)  Infrastructure spending 
D)  Military spending

Question 11

The last time the federal (national debt) of the United States was zero was:

Accepted Answer

A)  1790 
B)  1837 
C)  1860 
D)  It has never been zero since it was first funded 
A)  1790 
B)  1837 
C)  1860 
D)  It has never been zero since it was first funded

Question 12

Deficit hawks believe:

Accepted Answer

A)  That even underweight mice are worth eating 
B)  That financing government spending by borrowing harms the economy 
C)  That deficits are okay if they are caused by tax cuts 
D)  That deficits actually need to be increased during recessions 
A)  That even underweight mice are worth eating 
B)  That financing government spending by borrowing harms the economy 
C)  That deficits are okay if they are caused by tax cuts 
D)  That deficits actually need to be increased during recessions

Question 13

Why do conservatives believe government cannot create jobs?

Accepted Answer

A)  Only the private sector creates jobs? 
B)  Government spending to create jobs only reduces private spending. 
C)  For every government job there is a private sector job that will not be created to do the same thing 
D)  All of the above 
A)  Only the private sector creates jobs? 
B)  Government spending to create jobs only reduces private spending. 
C)  For every government job there is a private sector job that will not be created to do the same thing 
D)  All of the above

Question 14

Progressives argue that deficit spending will cause inflation only if:

Accepted Answer

A)  The economy is operating at a level of full employment 
B)  The economy is in a recession 
C)  Deficit spending will never cause inflation 
D)  None of the above 
A)  The economy is operating at a level of full employment 
B)  The economy is in a recession 
C)  Deficit spending will never cause inflation 
D)  None of the above

Question 15

The federal debt was first funded in

Accepted Answer

A)  1790 
B)  1800 
C)  1809 
D)  1829 
A)  1790 
B)  1800 
C)  1809 
D)  1829

Question 16

A National Government never has to "pay off" its debt because:

Accepted Answer

A)  People trust governments 
B)  Governments can always roll over their outstanding debt 
C)  Governments have the power to tax their citizens 
D)  National governments DO have to pay off the national debt at some time in the future. 
A)  People trust governments 
B)  Governments can always roll over their outstanding debt 
C)  Governments have the power to tax their citizens 
D)  National governments DO have to pay off the national debt at some time in the future.

Question 17

In the 2012 presidential election, President Barack Obama was in favor of cutting all spending except

Accepted Answer

A)  Training and education programs 
B)  Research and technology spending 
C)  Infrastructure investment-roads, high-speed rail 
D)  All of the above 
A)  Training and education programs 
B)  Research and technology spending 
C)  Infrastructure investment-roads, high-speed rail 
D)  All of the above

Question 18

Progressives argue that what the book calls useful government spending can increase GDP without reducing private investment. An example of useful government spending according to the book is

Accepted Answer

A)  Building pyramids by hand labor alone 
B)  Buying more military equipment 
C)  Fighting wars 
D)  Building highways 
A)  Building pyramids by hand labor alone 
B)  Buying more military equipment 
C)  Fighting wars 
D)  Building highways

Question 19

The 2009 recovery act spent money on what the book calls a number of useful projects. They included:

Accepted Answer

A)  Jobs for health care workers, jobs for teachers, jobs for bartenders in gambling casinos 
B)  Jobs for health care workers, jobs for the production of clean energy, jobs for people building military equipment 
C)  Jobs for health care workers, jobs for teachers, jobs for production of clean energy 
D)  None of the above 
A)  Jobs for health care workers, jobs for teachers, jobs for bartenders in gambling casinos 
B)  Jobs for health care workers, jobs for the production of clean energy, jobs for people building military equipment 
C)  Jobs for health care workers, jobs for teachers, jobs for production of clean energy 
D)  None of the above

Question 20

In the first two years of the recovery from the Great Recession (2010-2011), despite big increases in deficit spending, inflation in the US measured

Accepted Answer

A)  0% 
B)  .6% 
C)  1.6% 
D)  2.6% 
A)  0% 
B)  .6% 
C)  1.6% 
D)  2.6%

In 2011 and 2012, the House of Representatives passed budgets that promised spending reductions of

According to some conservatives, government spending on useful activities reduces private investment because the government "pre-empts" private opportunities.

Approximately what percent of the National Debt was owned within the United States government in 2011?

The National Debt of the United States in 2011 was

The major points of the Conservative views presented in the chapter include five arguments. Which of the following three are included:

The National Debt is different from a private personal debt because

The rise in deficit spending between 2008 and 2011 is evidence against the "crowding out" argument because

Individuals and governments have very different experiences "rolling over" outstanding debt because:

The National Debt of the United States in 2011 was (approximately) what percent of GDP

2012 presidential candidate Mitt Romney was in favor of cutting government spending in every area except:

The last time the federal (national debt) of the United States was zero was:

Deficit hawks believe:

Why do conservatives believe government cannot create jobs?

Progressives argue that deficit spending will cause inflation only if:

The federal debt was first funded in

A National Government never has to "pay off" its debt because:

In the 2012 presidential election, President Barack Obama was in favor of cutting all spending except

Progressives argue that what the book calls useful government spending can increase GDP without reducing private investment. An example of useful government spending according to the book is

The 2009 recovery act spent money on what the book calls a number of useful projects. They included:

In the first two years of the recovery from the Great Recession (2010-2011), despite big increases in deficit spending, inflation in the US measured

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

A Road to Full Employment

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Exam 17: Fiscal Policy: Austerians and Deficit Hawks V Stimulus

In 2011 and 2012, the House of Representatives passed budgets that promised spending reductions of

According to some conservatives, government spending on useful activities reduces private investment because the government "pre-empts" private opportunities.

Approximately what percent of the National Debt was owned within the United States government in 2011?

The National Debt of the United States in 2011 was

The major points of the Conservative views presented in the chapter include five arguments. Which of the following three are included:

The National Debt is different from a private personal debt because

The rise in deficit spending between 2008 and 2011 is evidence against the "crowding out" argument because

Individuals and governments have very different experiences "rolling over" outstanding debt because:

The National Debt of the United States in 2011 was (approximately) what percent of GDP

2012 presidential candidate Mitt Romney was in favor of cutting government spending in every area except:

The last time the federal (national debt) of the United States was zero was:

Deficit hawks believe:

Why do conservatives believe government cannot create jobs?

Progressives argue that deficit spending will cause inflation only if:

The federal debt was first funded in

A National Government never has to "pay off" its debt because:

In the 2012 presidential election, President Barack Obama was in favor of cutting all spending except

Progressives argue that what the book calls useful government spending can increase GDP without reducing private investment. An example of useful government spending according to the book is

The 2009 recovery act spent money on what the book calls a number of useful projects. They included:

In the first two years of the recovery from the Great Recession (2010-2011), despite big increases in deficit spending, inflation in the US measured

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Economic Growth

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

A Road to Full Employment

Filters