Budgets & National Debt Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. What is the best comparison of the size of the U.S. Defense budget?

Question 2 2. About what percentage of the budget is made up of discretionary spending?

Question 3 3. Which of these is NOT discretionary?

Question 4 4. What is the biggest component of the federal budget?

Question 5 5. About what percentage of federal spending is spent on interest on debt?

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Question 6 6. According to Keynesian economists, if the federal government attempts to balance the budget when the economy is in a recessionary gap, what effect will this have?

Question 7 7. According to Keynesian economists, if policymakers thought the economy was headed into a recession, what action would be most appropriate?

Question 8 8. If in fiscal year 2010, the federal government receives $1,800 billion in revenues and spends $1,550 billion on goods and services, what will happen to the national debt?

Question 9 9. John Maynard Keynes believed that fiscal policy designed to deal with budgets should _____

Question 10 10. According to Keynesian economists, what is the most appropriate time for fiscal authorities to attempt to balance the budget?

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Question 11 11. Which of the following is the best explanation of a budget surplus?

Question 12 12. How do you know if you have a budget surplus?

Question 13 13. What's the opposite of a budget surplus?

Question 14 14. Which of the following is not an option that a government has in using a budget surplus?

Question 15 15. Which of the following is a common option for the use of a budget surplus for all of the following: governments, businesses and individuals?

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Question 16 16. What is the current U.S. national debt (as of 2018)?

Question 17 17. Which of the following statements is true?

Question 18 18. Why would a country raise taxes when they have a large national debt?

Question 19 19. National debt is generally divided into three of which categories:

Question 20 20. Which of the following is a negative consequence of having a large national debt?

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Question 21 21. The total deficit for a country equals which of these?

Question 22 22. Which of these will cause cyclical deficits to decline?

Question 23 23. Which of these would add to the structural deficit?

Question 24 24. Which deficit is not affected by government spending levels ?

Question 25 25. Which of these would add to the cyclical deficit?

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Question 26 26. Deficits have been _________ common than surpluses during the past 50 years.

Question 27 27. Which of the following is the best explanation of a government budget deficit?

Question 28 28. What are two ways that revenue can decline and cause a budget deficit?

Question 29 29. During an economic downturn, the government will attempt to stimulate economic growth through:

Question 30 30. Which of the following is not an event that may cause an unanticipated deficit?

Budgets & National Debt Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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