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Social Studies, 23.12.2019 02:31 kayranicole1

1. when the government attempts to cover large deficits by creating more money, what is the probable result called?
government borrowing
hyperinflation, sv
excess currency
full employment

2. what is one of the major problems caused by a large national debt?
it does not allow small investments by private individuals.
it makes it hard for the government to carry on activities.
it makes it difficult for the country to operate internationally.
it decreases the amount of money available to be borrowed by businesses.

3. what was the state of the federal budget at the start of the twenty-first century?
surpluses for the first time in 30 years
large surpluses for the last 10 years
minor deficit spending for the first time in 10 years
balanced spending for the last 10 years

4. what can be expected when members of the baby boom generation begin to retire in large numbers?
increased gross domestic product
decreased interest paid
increased deficits
decreased services

5. what is a major argument against a constitutional amendment requiring a balanced budget?
it would be hard to monitor.
it would be too unpopular.
it would be difficult to obey.
it would be too inflexible.

6. the federal budget process begins with
appropriations bills.,fr
federal agency estimates.
congress.,ca
the congressional budget office.

7. which of the following might be part of an expansionary policy?
increased taxes
a tax cut
lower government spending
mandatory spending

8. classical economics states that
markets should be allowed to regulate themselves.
government should spend in a recession.
government should cut taxes in a recession.
government should raise taxes in a recession.

9. the main idea of the multiplier effect is that
government should create new money to put an end to infaltion.
every dollar the government spends creates a greater than one dollar change in
economic output.
taxes generally mutiply each year and create a greater deficit.
as the economy grows, more jobs are created.

10. the national debt is
all the money individuals owe on their credit cards.
the interest the government pays on bonds.
the total amount of money the federal government owes.
the same as a budget deficit.

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