Exam 15: Sustained Budget Deficits: Is This Any Way to Run a Government

Most of the national debt is held by government agencies.

Financing a deficit by increasing government spending will:

The unified budget includes the Social Security receipts and outlays.

Medicare, medicaid, and Social Security are the major sources of the forecasted long run deficit.

In the long-run deficits are likely to cause:

Which if the following is not one of the assumption made by the CBO in the baseline forecast for the budget deficit?

In the long run a budget deficit is likely to cause a decrease in GDP because:

In general, economists are more concerned about:

Evaluate the following statement. "Large national debts harm all citizens because they decrease the rate of investment. This will cause the rate of growth of the capital stock to fall, and eventually living standards will fall."

If outlays exceed receipts there is a budget surplus.

One of the main problems with a large national debt is the fact that:

Assume the economy is in a boom period. The increase in revenues in the economy has caused government revenues to increase. As a result, the federal government's budget now shows a surplus. If Congress increases government expenditures:

As a result of the national debt, marginal tax rates will be higher than otherwise. These higher marginal tax rates may result in:

The national debt refers to the amount by which federal government spending exceeds federal government revenues in a given time period.

Which allocation of the budget surplus would lead to a slow accumulation of the nation's capital stock-eventually causing increases in consumption?

Some economists argue that federal budget deficits are overstated. Which of the following is not a factor in this overstatement?

Jennifer earns an above average income and holds part of her wealth in the form of government bonds. Curtis earns an average income and holds no government bonds. Government increases taxes in order to pay the debt. What is the most likely results?

The net budget balance is total revenue minus total outlays.

Given the following information find the size of the national debt. Prior to 1985 the country's budget was balanced annually.

The amount by which government receipts exceeds government outlays over the relevant time span is called: