QUESTION 8 0.4 points Save Answer The total amount of money that a government owes is called: O a budget deficit. national surplus. O a budget surplus. public debt. QUESTION 9 0.4 points Save Answer Giving the government freedom to deficit spend when necessary is: seen as an economic cost to public debt. seen as an economic benefit to public debt. OO a fallacy; the market will always correct itself. not a good enough reason to allow public debt. QUESTION 10 0.4 points Save Answer An indirect cost of government debt is: O it can cause hyperinflation. it can distort the credit market and slow economic growth. it can cause unemployment below the natural rate. All of these are true. QUESTION 11 0.4 points Save Answer If interest rates increase, the government debt becomes: more volatile. O less expensive to pay. less of a burden. O more expensive to pay.QUESTION 13 0.4 points Save Answer On Friday, March 27 U.S. President signed the historic $2 trillion stimulus after Congress passes. Which of the following Decrease in taxes - increase in aggregate demand = increase in production - decrease in unemployment rate - economy back to full employment O Decrease in government spending - increase in aggregate demand increase in production - decrease in unemployment rate - economy back to full employment Increase in government spending = increase in aggregate demand = increase in production - decrease in unemployment rate = economy back to full employment Increase taxes = decrease in aggregate demand - increase in production - decrease in unemployment rate = economy back to full employmentQUESTION 5 0.4 points Save Answer Increased government spending on unemployment insurance during a recession is an example of: an automatic stabilizer. contractionary fiscal policy. discretionary fiscal policy. expansionary fiscal policy. QUESTION 6 0.4 points Save Answer The American Recovery and Reinvestment Act of 2009 is an example of: O discretionary fiscal policy. automatic stabilizers. fiscal give away to rich. All of these are true. QUESTION 7 0.4 points Save Answer The direct cost of debt depends on: the implementation lag. the amount of the deficit. fiscal policy. the interest rate.QUESTION 1 0.4 points Save Answer One way fiscal policy affects aggregate demand is: O directly through government spending. O directly through taxation. O directly through tariffs. O All of these are true. QUESTION 2 0.4 points Save Answer Automatic stabilizers are the: O fiscal policies that government actively chooses to adopt. O taxes and government spending that affect fiscal policy without specific action from policymakers. Keynesian policies. O expansionary fiscal policies. QUESTION 3 0.4 points Save Answer Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of: O automatic stabilizers. O discretionary fiscal policy. expansionary fiscal policy. O contractionary fiscal policy. QUESTION 4 0.4 points Save Answer The government budget involves: money going out to individuals for programs that do not involve goods or services. money going out through government purchases. O money coming in as tax revenues. All of these are true.0.4 points Save Answer QUESTION 12 A decline in economic growth in consecutive two quarters, marked by rising unemployment, and an increased number of bankruptcies, is called: O an expansion. O a recession. a severe depression. O a boom