What is called when government spending overwhelms government revenue resulting in government borrowing ?

Related Mcqs:

1. What is called that market in which supply overwhelms demand ?

   A. Deflated market
   B. Depressed market
   C. Bearish market
   D. Weak market

2. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

3. Government policies that focus on changing taxes and government spending are called ?

   A. fiscal policies
   B. incomes policies
   C. supply-side policies
   D. monetary policies

4. Government borrows in the form of promissory note to repay the bearer after some fixed days from the date of issue. How is called such borrowing ?

   A. Bond
   B. Treasury bill
   C. Term bound
   D. Securities

5. For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?

   A. booms, booms
   B. recession, recession
   C. booms, recessions
   D. recessions, booms

6. The government increase government spending to try to reduce unemployment This is an example of ?

   A. laissez-faire.
   B. monetary policy
   C. fine tuning
   D. automatic stablisers

7. The idea the government spending causes a reduction in private investment is called ?

   A. fiscal drag
   B. investment blight
   C. crowding-out
   D. the Thatcher effects

8. An increase in the budget deficit that causes the government to increase its borrowing ?

   A. Shifts the supply of loanable funds to the right
   B. Shift the demand for loandbale funds to the left
   C. Shift the demand for loanable funds to the right
   D. Shift the supply of loanable funds to the left

9. What is called the result of a state’s borrowing from its population, from foreign governments or from international institutions ?

   A. National debt
   B. Public debt
   C. Both of them
   D. None of them

10. Automatic stabilizers act to ______ government expenditures and _______ government revenue during an expansionary period?

    A. increase; increase
    B. decrease; increase
    C. increase; decrease
    D. decrease; decrease