Multiple Choice
Why do economists think that the structural deficit is a good measure of the direction of fiscal policy?
A) Because it adjusts over the business cycle and reflects the fiscal stimulus of policy.
B) Because it changes when policy changes, rather than when the economy changes.
C) Because it changes when monetary policy changes, reflecting the interest rate cost of debt.
D) Because it adjusts automatically, rather than requiring specific legislation.
Correct Answer:
Verified
Correct Answer:
Verified
Q157: If the national debt is owed to
Q158: If a budget deficit increases interest rates,
Q159: U.S.national debt at the end of the
Q160: In the short run, the dominant effect
Q161: In the early 1990s, economists became alarmed
Q163: In comparing the changes in actual budget
Q164: Most economists agree that the focus of
Q165: The remarkable fact about the structural deficit
Q166: The national debt<br>A)is increased by budget surpluses.<br>B)is
Q167: The federal budget deficit in 2009 was