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# Macroeconomics Study Set 42

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## Quiz 31 : Government Debt and Deficits

In any given year, the governmentʹs debt-service payments are
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Multiple Choice

C

Do we get a useful and meaningful statistic by dividing the national debt by the GDP?
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D

The governmentʹs primary budget deficit or surplus) is the
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Multiple Choice

E

The federal governmentʹs ʺprimary budget deficitʺ
Multiple Choice
If voters want to know how their tax dollars are being spent and how the federal government is managing its current spending, they should look at
Multiple Choice
Consider the following variables: G = government purchases I = interest rate on government debt D = stock of government debt T = net tax revenue The governmentʹs budget deficit can be expressed as
Multiple Choice
Suppose the stock of government debt in Canada at the end of one fiscal year is $475 billion. If the stock of debt falls to$461 billion by the end of the next fiscal year, and debt-service payments during that year were $38 billion, then we know that the government had Multiple Choice Answer: Consider the governmentʹs budget constraint. The accumulated stock of government debt will begin to fall Multiple Choice Answer: When a government changes its fiscal policy, it is Multiple Choice Answer: Consider the federal governmentʹs budget constraint. If the governmentʹs total budget deficit is$27 billion and its debt-service payments are $29 billion, then its Multiple Choice Answer: Suppose that in Year 2 there was a higher federal budget deficit than in Year 1. This could be explained by In Year 2. Multiple Choice Answer: In any given year, the governmentʹs debt-service payments are equal to Multiple Choice Answer: If we want to know whether tax revenues are sufficient to finance the discretionary part of government expenditure, which of the following measures should we analyze? Multiple Choice Answer: A simple equation describing the governmentʹs budget constraint is Multiple Choice Answer: The extent to which tax revenues are able to finance the discretionary part of total government expenditure is best measured by the Multiple Choice Answer: What is the difference between the governmentʹs debt and the governmentʹs deficit? Multiple Choice Answer: Suppose the stock of government debt in Canada at the end of one fiscal year is$475 billion. If the stock of debt falls to \$461 billion by the end of the next fiscal year, then we know that in that year