Which of the following concerns about the national debt are substantive? Check all that apply. O As government securities mature, portions of the national debt come due. When this occurs, the only way for the government to obtain the necessary funds is to raise taxes or cut expenditures. O Paying off the U.S. national debt will require future generations of Americans to decrease their purchases of goods and services by an amount equal to the existing debt. O The large U.S. national debt is in danger of bankrupting the federal government. O Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Which of the following concerns about the national debt are substantive? Check all that apply. O As government securities mature, portions of the national debt come due. When this occurs, the only way for the government to obtain the necessary funds is to raise taxes or cut expenditures. O Paying off the U.S. national debt will require future generations of Americans to decrease their purchases of goods and services by an amount equal to the existing debt. O The large U.S. national debt is in danger of bankrupting the federal government. O Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Read the following premise carefully and answer the questions specifically and in detail. "In the face of unstable economic growth due to a recession or accelerated inflation, the potential problems of high public debt include increased income inequality, reduced economic incentives, and crowding out private investment." 1. Explains in detail fiscal policy, its role and its effects on short- and long-term economic fluctuations. 2. Explain each of the tools that exist in expansionary fiscal policy and contractionary fiscal policy.
. What are the three general options available to the U.S. to begin to reduce the relative size of our national debt as a percent of GDP?
External debt of the United States refers to O The ownership of nongovernment debt by the government. O The debt of nongovernment organizations. O Combined foreign debt held by sources outside the U.S. government. D O U.S. government debt held by foreigners.
3. Assume the following information for Nation XYZ: * National debt in 2005 was $150... in 2015 national debt was $375 GDP in 1990 was $125... in 2000 the GDP was $300 A. What was the average increase in debt for Nation XYZ between the years 2005 and 2015 B. What was the average annual budget deficit for Nation XYZ between the years 2005 and 2015 C. Compute the debt-to-GDP ration to Nation XYZ for both 2005 and 2015
The_____ is the sum of past__.__ less surpluses. O national debt; budget deficits O public debt; national debts O budget deficit; public debts O budget deficit; national debts
Suppose that in 2011, Mexico's total government outlays were 657 billion pesos and total government revenue was 550 billion pesos. Calculate Mexico's budget surplus or deficit. Be sure to include a negative sign if appropriate. billion pesos Select the answer that best describes the impact that the surplus or deficit you calculated will have on Mexico's debt. Mexico's debt will rise by an amount equal to the size of the deficit O Mexico's debt will not change. OMexico's debt will fall by an amount equal to the size of the surplus
Suppose real GDP is constant. If the government's fiscal policy objective is to reduce the outstanding public debt, the government must: Have a structural primary budget surplus that is larger than its interest payments on the public debt O b. None of the answers is correct Oc Have a structural budget surplus equal to the outstanding public debt O d. Sell new bonds in the open market
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The difference between total federal debt issued and total federal debt "held by the public" is which of the following? O Federal debt held by foreigners. Federal debt held by the fed for use in monetary policy. Federal debt held by international organizations. Federal debt held by government agencies.