32. If we look at interest payments on the U.S. national debt as a fraction of GDP since World War II, we realize that theyA) increased slightly but consistently as the national debt increased in sizeB) increased from less than 2% 1980 to more than 3% in 1990C) were higher between 2000 - 2010 than in any previous decadeD)always exceeded 2%E) never exceeded 2%Ans: BDifficulty: Medium 33. Which of the following is FALSE? Difficulty: Easy34. Which of the following happened in response to the Great Recession of 2007-09?Difficulty: Medium35. The Treasury can retire part of the national debt only when9
Difficulty: Easy36. Many European countries chose to employ austerity measures during the Great Recession despite the fact that A) this would actually increase budget deficits due to lower tax revenues B) this would boost their own economies at the expense of their trade partnersC) exchange rates would have to be adjusted D) this would make their debt crisis worse E) economic activity would be reduced leading to increased hardship for much of its population Ans: EDifficulty: Easy37. Most debt issues by the Treasury are made toDifficulty: Easy38. When the U.S. Treasury engages in debt financing, Difficulty: Easy
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- Spring '12
- Deficit, national debt, United States public debt