16) Which of the following is not a way to reduce the government's budget deficit
A) selling government assets. B) issuing government bonds.
C) raising taxes. D) reducing government spending.
Ans: selling government assets.
Explanation:
The government's budget deficit can be reduced by selling government assets in accounting terms only. So this is not a way to reduce the government's budget deficit.
16) Which of the following is not a way to reduce the government's budget deficit A)...
Question 12 (5 points) The Government's fiscal policy options for ending severe demand-pull inflation include: a) Reducing government spending, increasing interest rates, or both. b) Increasing interest rates, reducing government spending, or both. c) Buying bonds on the open market. d) Increasing taxes, raising interest rates, or both. e) Reducing government spending, increasing taxes, or both.
27. A budget deficit is best defined as the a. shortage of spending power created by a government spending cut. b. shortage of spending power created by a tax increase. c. accumulation of past debt that has not been covered by taxes. d. amount by which a government's expenditures exceed receipts during a specific time period.
2. The Japanese government's stimulus spending will result in a large increase in the government's budget deficit. Some economists, however, are relatively unconcerned that crowding out would significantly reduce the effect of the stimulus spending on real GDP. Briefly explain the two types of crowding out, and explain why the Japanese government would be relatively unconcerned about it arising from its stimulus package.
Question 13 (3 points) Which fiscal policy is likely to reduce the government's budget deficit? Contractionary fiscal policy Fiscal stimulus Expansionary fiscal policy O Automatic fiscal policy Page 13 of 30 Previous Page Next Page
12. The budget deficit for the US Government is: a. the sum of all negative surpluses b. the difference in imports and exports with another country C. the difference between government spending and revenues d. the difference between assets and liabilities on the government's balance sheet
Some economists want to decrease to Other economists want to reduce the size of the deficit by raising of government spending to reduce government budget deficits taxes. Compare these two points view using aggregate supply aggregate program using a correctly lae and aggregate demand analysis. Illustrate the effects of each aggregate demand (AD) and short-run aggregate supply (SRAS) graph
Identify the normative statement(s) among the following statement(s). Select one: a. The federal government budget deficit reached 4% of GDP last year. b. The federal government spends too much. c. The federal government's spending is greater than its revenue to the treasury d. the federal government has increased its spending by 5% last year.
30. A budget deficit is compatible with recessionary times, according to Keynes, and incurred whenever: A) The government is increasing spending and/or reducing taxes and uses fiscal policy to stabilize the economy. B) Tax revenues exceed expenditures over the fiscal year. C) Discretionary fiscal spending is used to combat inflation and achieve macro equilibrium. D) The US Treasury engages in refinancing activities and cut spending.
The government's present value budget constraint states that A. the present value of government spending must be equal to the present value of consumers' disposable incomes. B. the present value of government spending must be equal to the present value of taxes. C. the government may run deficits each and every year, as long as the deficits are sufficiently small. D. taxes must equal government spending in each period.
What means would be best to reduce the current U.S. government deficit: (a) Cuts in mandatory spending programs; (b) Cuts in discretionary spending; and/or (c) Increased taxation? Explain why the particular actions you recommend are the best approach for reducing the deficit.