Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Fall 2022 » Government Debt Deficit Quiz
Below are the questions for the exam with the choices of answers:
Question #1
A sharp increases from 1945 to 1975.
B significant increases from 1980 to 1995.
C significant increases from 1993 to 2001.
D a continuous decline.
Question #2
A local businesses cannot get government contracts because of the higher bids of large corporations.
B increased taxes force higher levels of national saving.
C deficit spending by the government forces private investment spending to contract.
D foreign investors are willing to pay higher prices for U.S. bonds than TOP: American citizens will pay.
Question #3
A counteract the recession.
B worsen and prolong the recession.
C end the recession sooner.
D increase the level of real GDP.
Question #4
A acquired either during wars, especially World War II, or during recessions.
B owned by banks.
C financed by printing money.
D owned by foreigners.
Question #5
A an obligation to pay in domestic currency.
B an obligation to pay in foreign currency.
C owed entirely to U.S. citizens and banks.
D an obligation to pay over a shorter period of time.
Question #6
A tax incentives on investment encourage capital formation, an increase in aggregate supply.
B consumption rises in a recovery, which increases demand for investment.
C an increase in the budget deficit increases demand so that investment increases.
D the budget deficit falls enough to lower interest rates to stimulate investment.
Question #7
A will run a surplus during a recession and a deficit during a boom.
B will remain unchanged by adverse economic conditions.
C deficit will rise during a recession and fall during a boom.
D deficit will fall during a recession and rise during a boom. .
Question #8
A tax rates rise.
B the percentage of the national debt held by foreigners decreases.
C interest rates fall.
D debt service payments (interest) rise.
