ECO 302 Week 9 Quiz - Strayer



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Chapter 14 and 15

TRUE/FALSE

            1.         When a country has a deficit, its debt is growing.

                                   

            2.         A pay as you go social security system raises the capital stock.

                                   

            3.         If government budget is in deficit, then real government saving is in surplus.

                                   

            4.         If the government runs a deficit, households will feel wealthier.

                                   

            5.         A budget deficit caused by changing labor income taxes changes the labor and production.

                                   

            6.         The debt-to-GDP ratio typically rises during a recession.

                                   

            7.         The major peaks in the ratio of public debt to GDP in the U.S. reflect expenditures on Social Security.

                                   

            8.         Real national saving equals net investment.

                                   

            9.         Real government saving is positive when the real public debt increases.

                                   

            10.       If government expediture exceeds government revenue, then the government has a budget surplus.

                                   

MULTIPLE CHOICE

            1.         The governments sources of funds include:
a.         taxes.   c.         borrowing.
b.         printing money.           d.         all of the above.


                                   

            2.         The governments sources of funds include:
a.         taxes.   c.         paying interest on past bonds.
b.         government purchases.            d.         all of the above.


                                   

            3.         The governments sources of funds include:
a.         transfer payments.       c.         paying interest on the government debt.
b.         printing money.           d.         all of the above.


                                   

            4.         The governments sources of funds include:
a.         government purchases.            c.         borrowing.
b.         transfer payments.       d.         all of the above.


                                   

            5.         The governments uses of funds include:
a.         government purchases.            c.         paying interest on the past government debt.
b.         transfer payments.       d.         all of the above.


                                   

            6.         The governments uses of funds include:
a.         government purchases.            c.         printing money.
b.         borrowing.       d.         all of the above.


                                   

            7.         The governments uses of funds include:
a.         printing money.           c.         taxes.
b.         transfer payments.       d.         all of the above.


                                   

            8.         The governments uses of funds include:
a.         borrowing.       c.         paying interest on the past government debt.

b.         printing money.           d.         all of the above.

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