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Need some help with these practice questions, no working out needed, thanks! Question 21 2 pts When an economy is operating below its potential capacity,
Need some help with these practice questions, no working out needed, thanks!
Question 21 2 pts When an economy is operating below its potential capacity, Keynesian economists argue that: O taxes should be lowered but only if the government is running a budget surplus. O the government should cut taxes and/or increase spending in order to stimulate aggregate demand. O all of these. O taxes should be raised if the government is currently running a budget deficit. Question 22 2 pts When the U. S. federal government runs a budget deficit, it borrows money by selling: O Treasury bills, notes, and bonds. O financial assets located in foreign banks. O publicly owned land. O its gold reserves.Question 23 The crowding-out effect refers to: O higher future taxes accompanying budget deficits to reduce private consumption. O increases in private savings to reduce interest rates and, thereby, crowd-out government O the inflation rate to rise when the unemployment rate is low. O higher interest rates and reduced private spending that results from financing federal budget deficits. Question 24 The national debt is: O the difference between a nation's exports and imports of goods and services. O equal to the current size of the budget deficit. O the cumulative effect of all past budget deficits and surpluses of the federal government. O the sum of the personal debt of all citizens in the United StatesStep by Step Solution
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