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Economics chapter 15

What would be the best way for the federal government to attract investors toward purchasing Bonds over other investment options
Offer high interest rates
What was the state of the federal government budget at the start of the 21st-century
Which of the following is not a problem associated with high national debt
What can be expected when members of the baby boom generation begin to retire in large numbers
Increased deficits
When the government attempts to cover large deficits by creating more money what is the probable result called?
When revenues exceed expediters
Try surplus
Which of the following is not a reason the national debt Rose during Ronald Reagan’s term as president
The cost of running a war
Servicing the debt is
Paying interest on debt
Which of the following would be in accurate statement about achieving a balanced budget
Most states require a balanced budget for state spending
What role does the office of management and budget play in creating the federal budget
The office of management and budget is the part of the executive office of the president the prepares the federal budget based on spending proposals received from federal agencies
What is the role of the office of management and budget
To manage the federal government budget
What is the purpose of stopgap funding
To keep the government running on the budget has not been approved
What are two types of expansionary policy’s
Increasing government spending and cutting taxes
Which of the following is an example of expansionary fiscal policy
Cutting taxes
Why does the government sometimes use an expansionary fiscal policy
To encourage growth and stop or prevent a recession
Coordinating fiscal policy, one of the five limits official policy, can be difficult because
State and local government policies might interfere with the intended outcome of federal policies
All of the following reasons why it’s difficult to implement balance official policy except
The need for discretionary spending
What will lead directly to a government shutdown
When Congress and the president cannot agree on temporary funding
Which of the following is a contractionary fiscal policy
The president and Congress pass a new two cent per gallon gasoline tax
Why is it difficult for the federal government to increase or decrease spending
Two thirds of all government spending is on entitlement which the government cannot Easley alter
The federal government’s 2011 fiscal year begins on
October 1, 2011
The office of management and budget is part of the
Executive office of the president
Every hour the federal government spends about
$250 million
The government agency that provides economic data to Congress is the
Congressional budget office
What is the multiplier effect
The idea that every one dollar change in fiscal policy creates a greater than one dollar change and national income
After the fall of the economy in 1929, what did classical economists believe to be the solution of the Great Depression
Wait for the call me to achieve equilibrium
Which of the following is an example of an automatic stabilizer
How do keynesian economics and supply side economics comparing contrast
Key economics uses government to increase demand and tax cuts supply-side economics increases supply through tax cuts
What do supporters of supply side economics believe
That taxes have a strong negative influence on economic output
The Laifer curve for VICS the facts of changes in the tax rate in which of the following
Tax revenues
Keynesian economics failed to deal successfully with
High inflation during the 1970s
Which of the following presidents increased top marginal income tax rates during his term in office
Franklin D Roosevelt
In contrast with classical economics, Keynesian economics
Take a broader view of the economy
Which of the following statements is a fundamental part of supply-side economics
The government should reduce taxes to promote economic growth by increasing aggregate supply
Which economic school that would explain how massive government expediters during World War II sharply move the country out of Great Depression
Keynesian economics

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