Watch https://www.youtube.com/watch?v=KkQI_rsg_Ds&t=4s

1. How does the female student in the blue shirt explain debt and deficit using a metaphor?

Group of answer choices

• The debt as a hole in the ground that you dig out yearly and the amount of dirt that you dig out as the deficit in a year. The hole gets bigger and bigger is the debt.
• There is no metaphor.
• The deficit as a hole in the ground that you dig out yearly and the amount of dirt that you dig out as the debt in a year. The hole gets bigger and bigger is the deficit.
• The metaphor depends on how one defines it.

2. The narrator defines a deficit is any shortfall in any single year between federal income and federal spending.

Group of answer choices

• True
• False

3. The narrator defines a debt is the accumulation of deficits.

Group of answer choices

• True
• False

4. In the video, how many times has the U.S. run budget surpluses in the last 40 years?

Group of answer choices

• 4.
• 5.
• 6.
• 3.

5. Under what President Administration was the last one to have budget surpluses?

Group of answer choices

• Reagan Administration.
• Trump Administration.
• Clinton Administration.
• Obama Administration.

6. What did President Reagan do in the 1980's to greatly increase both the deficits and debt?

Group of answer choices

• Raise taxes and decrease in government spending .
• Cut taxes and decrease in government spending .
• Cut taxes and increase in government spending .
• Raise taxes and increase in government spending

7. The debt can be looked at as a percentage of GNP or GDP.

Group of answer choices

• True
• False

8. How does the U.S. government borrow money?

Group of answer choices

• The U.S. government takes out loans from commercial banks.
• The U.S. government borrows money through the bond market by selling U.S. Treasury bills, notes and bonds (https://www.treasurydirect.gov/).
• The U.S. government never borrows money.
• The U.S. government borrows money directly from other nation governments.

9. What is the problem with growing debt?

Group of answer choices

• The higher the debt, the lower the interest payments.
• There is no problem with growing debt
• The higher the debt, the interest payments always stay the same.
• The higher the debt, the higher the interest payments.

10. What happens to the private sector if the government borrows too much?

Group of answer choices

• The government borrowing has no effect on the private sector.
• The government never borrows too much.
• The government crowds out private businesses.
• The government crowds in private businesses.

11. Too much government borrowing drives up interest rates.

Group of answer choices

• True
• False

12. Economist Glen Hubbard argues that budget deficits due to tax cuts are okay because the tax cuts help to stimulate investments and long term economic growth.

Group of answer choices

• True
• False