Homework Answers
The government finances the budget deficit by
a) borrowwing from the public.
This is done in different ways like bonds,government securities sale etc.
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The government finances the budget deficit by a, borrowing from the public. Ob. borrowing solely from...
The government finances the budgetary deficit by A) from the public (through the sale of B)...
The government finances the budgetary deficit by A) from the public (through the sale of B) issued by the U.S. Treasury), or from other countries (such as China), or from the Federal Reserve System (we’ll get into that in the next module). People holding U.S. government Treasury Bills, Treausry notes and Treasury bonds are C) (lenders/borrowers – fill in the number from the word bank) to/from the federal government. The total amount owed by the federal government is known as...
The French Government runs a budget deficit and finances it by borrowing $20 billion. Use the...
The French Government runs a budget deficit and finances it by borrowing $20 billion. Use the loanable fund model to show the decline in public savings and decline in investments (crowding out)
QUESTION 4 Congress finances a budget deficit by O A raising taxes B. printing money OC....
QUESTION 4 Congress finances a budget deficit by O A raising taxes B. printing money OC. lowering taxes OD. selling bonds QUESTION 5 The group of three economists appointed by the president to provide fiscal policy recommendations is the A Council of economic advisors B. Bureau of economic analysis O Federal open market committee OD. Federal reserve board of governors C. QUESTION 6 The following data relates to the value of different items in the hypothetical economy of Richlandia: savings...
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is...
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will increase the demand for loanable funds, drive up interest rates, and leave less loanable money available for consumers and businesses. Joseph is concerned about the: A) boomerang effect. B) expansionary countereffect. C) ricochet effect. D) crowding-out effect. 24. Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively...
3. The U.S. federal government finances budget deficits by A. selling stock, much like a corporation....
3. The U.S. federal government finances budget deficits by A. selling stock, much like a corporation. B. printing additional currency. C. borrowing from the public. D. raising property taxes. E. raising sales taxes. 4. According to long-run projections, under current law, A. federal government spending as a percentage of GDP will rise gradually but substantially in the next several decades. B. federal taxes as a percentage of GDP will rise gradually but substantially in the next several decades. C. the...
1. From whence do Government Securities originate? a) The U.S. Treasury as a result of budget...
1. From whence do Government Securities originate? a) The U.S. Treasury as a result of budget surpluses b) The U.S. Treasury as a result of budget deficits c) The Federal Reserve as a result of Open Market Purchases d) The Federal Reserve as a result of Open Market Sales
Are federal budget deficits related to trade deficits? A. Yes, but only if the quality of U.S. goods and services is deteriorating B. No. The budget deficit is entirely a domestic matter, while the...
Are federal budget deficits related to trade deficits? A. Yes, but only if the quality of U.S. goods and services is deteriorating B. No. The budget deficit is entirely a domestic matter, while the trade deficit only affects U.S. citizens who travel abroad. C. Yes. Higher deficit spending goes up results in more government borrowing, and foreign residents who lend funds to the U.S. government have fewer resources to spend U.S. export goods. D. Yes. If U.S. consumers buy too...
9. Which of the following statements is (are) correct? (x) A budget surplus occurs when government receipts are more tha...
9. Which of the following statements is (are) correct? (x) A budget surplus occurs when government receipts are more than spending and a budget deficit occurs when government spending is more than receipts. (y) The most common methods that the U.S. government uses to finance the budget deficit is by borrowing solely from the Federal Reserve or printing currency in the amount of the budget deficit. (z) If interest rates remain constant, then government must spend a larger amount of...
6. Monetizing the deficit One of the major objections to government budget deficits is that they...
6. Monetizing the deficit One of the major objections to government budget deficits is that they may be inflationary. In addition, some worry that the Federal Reserve may monetize part of the deficit by buying some of the newly issued debt, potentially causing even more inflation. In general, a tax cut increases both real GDP and the price level, since it causes aggregate demand to increase. The following graph shows the demand and supply of bank reserves. Show the initial...
Which of the following statements explains why borrowing from the public by the federal government to...
Which of the following statements explains why borrowing from the public by the federal government to pay for it's debt is not inflationary? A. Borrowing from the public actually offsets the increase in government spending by increasing household and or business spending. B. Borrowing from the public actually offsets the increase in household spending by reducing business spending. C. Borrowing from the public actually offsets the increase in business spending by reducing household spending. D. Borrowing from the public actually...
QUESTION 4 Congress finances a budget deficit by O A raising taxes B. printing money OC. lowering taxes OD. selling bonds QUESTION 5 The group of three economists appointed by the president to provide fiscal policy recommendations is the A Council of economic advisors B. Bureau of economic analysis O Federal open market committee OD. Federal reserve board of governors C. QUESTION 6 The following data relates to the value of different items in the hypothetical economy of Richlandia: savings...
23. Suppose a government finances its expansionary fiscal policy by borrowing from the public. Joseph is concerned that this will increase the demand for loanable funds, drive up interest rates, and leave less loanable money available for consumers and businesses. Joseph is concerned about the: A) boomerang effect. B) expansionary countereffect. C) ricochet effect. D) crowding-out effect. 24. Suppose the economy is growing at 4% a year, inflation is measured at 0.5% a year, and the federal deficit is relatively...
6. Monetizing the deficit One of the major objections to government budget deficits is that they may be inflationary. In addition, some worry that the Federal Reserve may monetize part of the deficit by buying some of the newly issued debt, potentially causing even more inflation. In general, a tax cut increases both real GDP and the price level, since it causes aggregate demand to increase. The following graph shows the demand and supply of bank reserves. Show the initial...
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