Macro Chapter 14 – Flashcards

Government budget​ deficit:

It may be argued that the effects of a higher public debt are the same as the effects of a higher deficit because

Public​ debt:

Which of the following statements is true when considering budget deficits and the national​ debt?

The federal government has its best opportunity to lower its national debt when it has

If the federal government has a budget deficit it can finance its spending by

Which of the following statements is true regarding the national debt and federal government​ deficits?

Since the​ 1940s, more often than​ not, the U.S. federal government has

Since​ 2001, more often than​ not, the U.S. federal government has

Which of the following is a reason for this resurgence in federal government budget​ deficits?

Since 1970 the U.S.​ government's budget deficit as a percentage of real GDP has

If a government spends more than it receives during a​ year, then during this year it experiences a​ ________, and if it spends less than it​ receives, it experiences a​ ________.

The total value of all outstanding federal government securities is

Since​ 2001, the average annual government budget deficit has exceeded 10 percent of GDP.

The federal budget deficit is a​ flow, whereas accumulated budget deficits represent a

If federal budget deficits ​increase, then a part of that deficit

A trade deficit implies that

Generally a larger US trade deficit is accompanied by a

Suppose the dollar value of imports to the U.S. exceed the dollar value of exports from the US. This implies that

If foreigners have an excess supply of dollars after trading goods and services they will likely

If the U.S. federal government operates with a budget deficit it must borrow. In order to entice people to lend money to finance this​ deficit, the U.S. government must

A natural consequence of the government continually spending more than what it takes in through tax​ receipts, ceteris​ paribus, is that

There is an ______ relationship between the interest rate and the price of a bond.

As the interest rate or yield on U.S. bonds​ increases, foreigners

From the end of WWII through 1983 the U.S. government had consistently experienced

Smaller trade deficits tend to accompany larger government budget deficits.

Other things​ equal, interest rates will​ ________ whenever there is​ ________ in deficits financed by an increase in borrowing.

In the presence of a​ short-run recessionary​ gap, government deficit spending can influence both real GDP and employment.

In the long​ run, higher government budget deficits resulting from increased government spending​ and/or tax cuts will do all of the following except

Higher government deficits arise from increased government spending or tax​ cuts, which raise

Entitlements in the U.S. are

The U.S. federal government has contemplated ways to reduce its national debt. Which of the following suggestions would best enable the government to achieve this​ goal?

From an arithmetic point of​ view, a federal budget deficit can be wiped out by simply increasing the amount of taxes collected.

Data supports the idea that tax increases can completely eliminate actual deficits.

Entitlements are the most important component of the federal budget.

Entitlements are growing faster than any other part of the federal government budget.

The United States is

To assess the changes in a​ nation's degree of public​ indebtedness, most economists examine ratios of

Between the late 1990s and early years of this​ century, most nations observed