8. what is a treasury note?
a government bond that is repaid in two to ten years
a government bond that can be issued for as long as 30 years
a government bond that is repaid in three months to a year
all the money the federal government owes to bondholders
9. which of the following did not contribute to the federal budget surplus in the 1990s?
a strong economy and low unemployment
a decrease in government spending
tax increases resulted in more federal revenue
new budget procedures to control government spending
11. creating more money could increase the demand for goods and services
but also risk raising the national debt
and also prevent inflation
and also cause the crowding-out effect
but also risk causing the dollar to lose its value
12. which of the following statements is a fundamental part of keynesian economics?
the federal government should have a balanced budget every year to protect economic growth.
the government should reduce taxes to promote economic growth by increasing aggregate supply.
the economy will only reach equilibrium and prosperity through the self-regulation of the free market.
the government can use deficit spending to increase aggregate demand and pull the economy out of recession.