What can the federal government do to finance a

This preview shows page 45 - 48 out of 77 pages.

222. What can the federal government do to finance a deficit? A) cut taxes B) increase purchases of goods and services C) increase transfer payments D) borrow funds
Page 46 223. What was the main financial problem that the government of Greece faced in 2009?
224. Suppose that Canadian debt is $7 trillion at the beginning of the fiscal year. During the fiscal year, its purchases of goods and services and its transfers are $2 trillion, and tax revenues are $1.5 trillion. At the end of the fiscal year, the debt is:
225. When the government has a deficit, it will most likely finance the deficit by:
226. If government spending increases and taxes decrease: A) implicit liabilities will increase. B) implicit liabilities will decrease. C) the public debt will increase. D) the public debt will decrease.
227. According to the text, the public debt of the Canadian federal government at the end of fiscal year 2015 equaled about:
Page 47 228. When the budget is in deficit, the government generally:
229. Public debt is:
230. Suppose that the budget deficit of a country remains level for 5 years. The federal debt will: A) remain constant. B) fall. C) rise. D) either remain constant or fall.
231. The national debt _____ when the federal government incurs a _____.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture