What is the difference between the federal budget deficit and the national debt?
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The budget deficit is the amount by which expenditures exceed revenues in a particular year, while the national debt is the cumulative effect of all past budget deficits and surpluses.
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The national debt is the:
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indebtedness of the federal government in the form of outstanding interest-earning government security.
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Most of the U.S. national debt is owed to __. Thus a rising national debt implies that there will be a future redistribution of income and wealth in favor of __.
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other U.S. citizens; bondholders
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The sum of past federal budget deficits is the:
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national debt
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The national debt is:
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the cumulative effect of all past budget deficits and surpluses of the federal government.
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If the federal government were to run a budget deficit, this would:
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increase the size of the national debt.
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The national debt is best described as the:
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sum of all federal budget deficits, past and present.
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When measured as a percentage of GDP, the U.S. national debt reached its highest levels as a result of:
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World War II.
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Treasury Bonds are
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both liquid and a store of value.
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The president of each regional Federal Reserve Bank is appointed by
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the board of directors of that regional Federal Reserve Bank.
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Between 1998 and 2001, the federal budget was
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in surplus.
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To finance a federal budget deficit, the U.S. Treasury borrows by selling:
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treasury bills, treasury notes, and treasury bonds
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If the federal government runs a budget __, then the national debt becomes __.
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surplus, smaller
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The central bank of the United States is the:
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Federal Reserve Banking System
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"Crowding out" refers to federal government deficits financed by:
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borrowing which increases interest rates and thereby reduces private spending.
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Which of the following correctly describes the national debt?
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The total amount of money owed by the federal government.
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