Government deficit financed spending will crowd out private investment when: A.

Question

Government deficit financed spending will crowd out private investment when: A. There is a recession B. The interest rate falls C. There is full employment D. There is general unemployment 10. Payment of Interest on the public debt most clearly imposes a burden: A. If it is all held by citizens of the country B. On people who buy government bonds C. Because it takes resources to collect taxed and pay out interest D. On future generations 11. The biggest part of U.S money supply is: A. Coins issued by the Treasury B. Paper money issued by the Federal Reserve System C. Government bonds and short-term notes D. Commercial bank demand deposits 12. Mi is: A. Demand deposits plus currency B. Coins and paper money C. All bank deposits plush currency D. None of the above. 13. The amount of currency (coins and paper money) in circulation is basically determined by: A. The Treasury

Explanation / Answer

9.Ans: A. There is a recession.

10.Ans: D. Future generations.

11.Abs: B. Paper mony issued by Federal Reserve System.

12.Ans: B. Both paper and coin

13. The Federal Reserve

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