Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 32, Problem 2MCQ
To determine
Changes in the U.S. national debt, when the federal government's budget changes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
If a country's GDP is $750 million, its national debt is $500 million, and interest on the debt is 3%, annual interest payments on the debt represent _____ of GDP.
Explain the difference between budget deficit and national debt.
explain the impact of balanced budget on national debt
Chapter 32 Solutions
Foundations of Economics (8th Edition)
Ch. 32 - Prob. 1SPPACh. 32 - Prob. 2SPPACh. 32 - Prob. 3SPPACh. 32 - Prob. 4SPPACh. 32 - Prob. 5SPPACh. 32 - Prob. 6SPPACh. 32 - Prob. 7SPPACh. 32 - Prob. 8SPPACh. 32 - Prob. 9SPPACh. 32 - Prob. 10SPPA
Ch. 32 - Prob. 1IAPACh. 32 - Prob. 2IAPACh. 32 - Prob. 3IAPACh. 32 - Prob. 4IAPACh. 32 - Prob. 5IAPACh. 32 - Prob. 6IAPACh. 32 - Prob. 7IAPACh. 32 - Prob. 8IAPACh. 32 - Prob. 9IAPACh. 32 - Prob. 10IAPACh. 32 - Prob. 11IAPACh. 32 - Prob. 1MCQCh. 32 - Prob. 2MCQCh. 32 - Prob. 3MCQCh. 32 - Prob. 4MCQCh. 32 - Prob. 5MCQCh. 32 - Prob. 6MCQCh. 32 - Prob. 7MCQCh. 32 - Prob. 8MCQ
Knowledge Booster
Similar questions
- What is the main reason for employing expansionary fiscal policy during a recession?arrow_forwardIn a recession, needs-tested spending ________ and induced taxes ________. increases; increase decreases; increase increases; decrease decreases; decrease increase; do not change Discretionary fiscal policy is defined as fiscal policy initiated by an act of Congress. left to the discretion of military authorities. with multiplier effects. initiated by a Presidential proclamation. triggered by the state of the economy. If government expenditure on goods and services increase by $100 billion, then aggregate demand increases by $100 billion. decreases by more than $100 billion. increases by more than $100 billion. increases by less than $100 billion. remains unchanged. The magnitude of the tax multiplier is ________ the magnitude of the government expenditure multiplier. smaller than greater than exactly one half the inverse of equal to Suppose the economy is in an equilibrium in which real GDP is less than potential GDP. To increase…arrow_forwardIn the beginning of the year, the economy has public debt (or national debt) of $470 million. This year, tax revenues collected by the government is $50 million and government outlays are $75 million. At the end of the year, this country has public debt (or national debt) of $____ million.arrow_forward
- The Government and Fiscal Policy (chapter 16) Explain how a larger government budget deficit increase the magnitude of the crowding-out effect? Note: please do not give a copy & paste answer from Chegg. or course heroarrow_forwardHow can a country reduce its public debt? A) Increasing government spending B) Reducing budget deficits C) Expanding fiscal policy D) Increasing tax evasionarrow_forwardA government shows a primary deficit of $1122 and the expenditure on interest payment is $432 what would be the fiscal deficit in the economy.arrow_forward
- 2) Transfer payments are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 3) Personal taxes are the ________ in the government's budget. A) smallest expenditure source B) largest expenditure source C) smallest revenue source D) largest revenue source 4) A government's debt is increased when it A) balances is budget. B) buys more bonds. C) runs a deficit. D) runs a surplus. 5) When a government runs a surplus A) its debt increases. B) it must raise taxes. C) its debt decreases. D) it must cut spending. 6) The amount the government owes to the public is the federal debt. 7) If tax receipts are greater than government expenditures the government is running a surplus. 8) If the government runs a surplus, then the government debt increases. 9) Transfer payments are the largest part of the U.S.…arrow_forwardIf Canada's primary budget deficit is negative, then Canada's debt will be ___________ next year.arrow_forward18)What action could the TCMB take to reduce the crowding-out effect of an expansionary fiscal policy?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co