1. When does the new fiscal year for the US government begin and end? 2. Based o
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Question
1. When does the new fiscal year for the US government begin and end?
2. Based on the stages listed in your text, what stage in the federal budgetary process should the US government be in now (July) in terms of the upcoming fiscal year?
3. If Congress fails to pass a budget before the fiscal year starts, then federal agencies may continue to operate only if Congress has passed a _____________. If it has not, then _____________. (Pick your answers for both blanks from those below.)
a. balanced budget amendment.
b. deficit reduction plan.
c. tax increase.
d. continuing resolution.
e. the president has the right to raise the debt ceiling.
f. federal agencies operate on the basis of the previous year%u2019s budget.
g. the federal government shuts down.
h. the interest rate paid on the national debt automatically shuts down.
4. Google usdebtclock.org and open up the real time site. Record the amount given for the US National Debt (for the last six digits, just list the first number and follow it with 0s) and the date and time you recorded it.
Note: For this and other items on the debt clock you can pull up a definition by placing your hand cursor over the item.
5. Do the same as in question #4, but for the US Federal Budget Deficit for both tasks.
6. In your own words, define the terms national debt and federal budget deficit after reading the text discussions for both and explain how they are related.
7. To finance a federal budget deficit, the US Treasury borrows money by selling: a. publicly held land.
b. its gold reserves.
c. Treasury bills, Treasury notes, Treasury bonds.
d. financial assets located in foreign banks.
8. Which of the following US Treasury securities represents ownership of the national debt?
a. Bonds owned by the banks and insurance companies.
b. Bonds owned by the Social Security Administration.
c. Bonds owned by private individuals.
d. All of the above.
9. When the Social Security Administration collects more money from FICA payments than it gives out to retirees and others, what happens to those excess funds?
What is the effect of these actions on a budget deficit?
10. According to the author, what happens when the Social Security Administration no longer collects more than it needs to dispense? What four courses of action are open to the Treasury to remedy this situation, according to the text%u2019s author?
11. According to your text, the last time the US government ran a surplus began in what year? In what year did this surplus end?
12. The debt ceiling places a legal limit on the size of the national debt. True or False?
13. Identify and explain the two reasons given by the author of the text why one should not worry about the US government going bankrupt?
14. According to usdebtclock .org, what is the amount of the Net Interest on Debt? (List the last 5 digits as 0s.)
15. According to your text, which of the following in 2009 owned the largest proportion of the national debt? a. the public sector
b. the private sector
c. foreigners
16. One concern over external national debt is that interest and principal payments transfer wealth overseas. In 2009, the percentage of the national debt held by foreigners was: a. 5 percent.
b. 8 percent.
c. 20 percent.
d. 28 percent.
e. 50 percent.
17. Use your online debt clock to find the current US Debt Held by Foreign Countries and record it using 0s for the last five digits.
18. Which of the following is true if all the national debt were owned internally?
a. The federal government would not need to refinance the national debt.
b. The federal government would not need to worry about raising taxes to pay interest on the national debt.
c. The distribution of income from interest payments on the national debt would still favor bondholders, who tend to be upper income individuals. d. All of the above are true.
19. Critics of Keynesian fiscal policy feel that high levels of government spending:
a. assist private sector investing by creating infrastructure.
b. have no impact on private sector investment.
c. complement private spending.
d. cause private sector investment to decline because of crowding out.
e. cause private sector spending to decrease because of increases in corporate taxes to finance the government spending.
20. What are the 2 Keynesian counterarguments to the position stated in question #19?
21. In what situation do both sides of the crowding out argument agree that complete crowding out will occur?
Explanation / Answer
1.the answer to your secondary question is "yes" and "no". First, to your main question see the link below (link #1) to understand your Federal Government's Fiscal Year and how the "camels nose" never quite leaves the "tent"...LOL! The Fiscal year begins 1 October of every year and ends 30 September. What they won't tell you here is that during the 1st Fiscal Quarter most usually there is what is known as a "Continuing Resolution". It's the "continuing resolution" that would place your secondary question into a "no" answer. Recruiters are likely to place you into the Service at the end of January (this follows the swearing in after a previous November mid-term election cycle) the following year.
2.
3.a,c
5.The federal budget deficit has been one of the most contentious political issues of the last few years and figures to be a main topic of discussion in Washington during President Obama's second term. The current national debt is somewhere around $16 trillion dollars, a figure that will grow at around $1-2 trillion dollars a year if government spending and tax revenues remain at current levels. In 2011, the rating agency Standard and Poor's downgraded U.S. government debt from its highest AAA rating to AA+, and many politicians and economists have of more dire consequences if the deficit remains and the national debt continues to grow. However, many other politicians and economists have also argued that federal debt levels are nowhere near dangerous level, and that, if anything, the government should increase spending in the short-term in order to avoid another recession. This hub will attempt to cut through the political junk in order to take an unbiased look at government spending in order to explain the causes, effects, and possible solutions to our federal budget deficit and rapidly increasing national debt levels. Will Congress finally be able to come to an agreement on a long term solution to the budget deficit
7.a
8.d
12.true
16.c
18.d
19.c
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