Exam 14: Federal Budgets and Public Policy

The U.S. government's fiscal year covers from

Which of the following steps does not belong in a sequence reflecting the impact on international markets of increased borrowing to finance a large government budget deficit?

Some economists argue that federal government capital projects, which offer benefits over a number of years, should be financed over a number of years and therefore involve deficit finance.

A continuing resolution provides authorization for continuing agency operation even after its budget has expired.

The federal government's fiscal year

When automatic stabilizers are the cause of higher deficits, we would expect to observe that

The key link between the so-called twin deficits involves

The difference between the federal budget deficit and the national debt is that the

It is possible for the budget deficit to change even if there is no change in discretionary fiscal policy.

Which of the following is not true about the U.S. twin deficits?

The accepted philosophy on U.S. federal deficits prior to the Great Depression was that

One proposal for improving the budget process is to

The long-run opportunity cost of government spending's crowding out of private investment

The annual Economic Report of the President is written by

If aggregate output is falling,

Crowding in is more likely to occur, as a consequence of federal deficits, when

It took more than 200 years for the federal debt to reach $1 trillion and then only an additional 30 years to increase seven fold.

If the automatic stabilizers are creating budget deficits, the economy must be experiencing falling output.

A cyclically balanced budget is one in which surpluses during recessions are balanced by deficits during expansions.

Until 1980, the national debt was mostly the result of