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- Which of the following makes up the largest sliceof the budgetary pie?a. defense expendituresb. income security expendituresc. foreign aid expendituresd. domestic policy expenditures other than for incomesecuritye. interest expendituresThe housing market has weakened during every recession except which of the following? a. The Recession of 1974 b. The Recession of 1991 c. The Recession of 2001 d. The Recession of 200804. A "sovereign debt crisis" (a) Merely reduces the effectiveness of Keynesian policy. (b) Drastically limits the government's ability to borrow to finance expansionary Keynesian policy and thus makes such policy unavalable (c) May make a recession worse as governments implement austerity policies to reduce the debt and shore up lenders' confidence (d) All the above (e) Only (b) and (c) are true.
- Fiscal experts in the United States are most concerned about the country's: Select one: a. risk of debt default. b. high ratio of debt to GDP. c. implicit liabilities. d. low ratio of debt to GDP.The "No - Markets Fail Often" camp Select one: a. believes business cycles happen regularly. b. focuses on the short-run. c. rejects Say's Law. d. believes the economy's self-adjusting mechanisms are slow. e. does all of the above.How do transfer payments in the form of unemployment compensation work as an automatic fiscal stabilizer during a recession? a. Transfer payments boost the oscillation in the business cycle. b. Transfer payments decrease the government expenditure that helps in controlling the recession. c. Transfer payments increase government spending that, in turn, decreases disposable income. d. Transfer payments lead to a rise in tax revenue that further boosts the money supply in an economy. e. Transfer payments work as income supports and reduce the effects of the recession.
- What is a default on the national debt? A. The Federal Reserve purchases Treasurys issued by the federal government. B. The federal government buys back its own debt from the holders of United States Treasuries by having the Treasury print money. C. The holders of United States Treasurys forgive the debt and provide the government with cash. D. The federal government declares bankruptcy or restructures the payments on its debts with the lenders.When is it inappropriate to use monetary and fiscal policy to stimulate or stabilize the economy? please also give a reference on this one too.Which of the following is a positive macroeconomic statement? Should we increase unemployment benefits? O Higher pay motivates workers at my restaurant. O I should use less water since we are in a drought. An increase in my paycheck means I can spend more than before. O Should we be trying to reduce our national debt? The unemployment rate went up to 25% during the Great Depression.
- The U.S. government funds deficit spending by: A. selling government services. B. decreasing taxes. C. redeeming bonds. D. issuing bonds E.increasing taxesClassify each of the following statements as positive ornonnative. Explain.a. Society faces a short'"'run trade-off betweeninflation and unemployment.b. A reduction in the rate of money growth willreduce the rate of inflation.c. The Federal Reserve should reduce the rate ofmoney growth.d. Society ought to require welfare recipients to lookfor jobs.c. Lower tax rates encourage more work and moresaving.1. During the late 1980s and early 1990s, most of the budget deficits were accounted for by a. the decline of foreign investment in the United States. b. the downturn in the economy. c. deliberate fiscal policy changes. d. All of the above are correct. 2.Debt is to deficit as a. money is to income. b. rent is to dividend. c. flow is to stock. d. property is to wealth. 3. A chart of the ratio of national debt to GDP from 1915 to 2014 would show a. significant decreases from 2003 to 2010. b. significant increases from 1983 to 1994. c. sharp increases from 1945 to 1975. d. a continuous decline. 4. A chart of the ratio of national debt to GDP from 1915 to 2014 would show a. significant increases during World Wars I and II. b. significant increases from 1945 to 1975. c. significant increases from 1995 to 2003. d. a larger value in 1975 compared to 1945. 5. In 2009, the…