1. the automatic stabilizers tend to A. help \"smooth out\" the business cycle B

ID: 1188133 • Letter: 1

Question

1. the automatic stabilizers tend to

A. help "smooth out" the business cycle

B. make the business cycle worse

C. eliminate the business cycle

D none of hte above describes teh impact of automatic stabilizers

2. each of the following is an example of discretionary fiscal policy exept

A. public works spending

B. making the automatic stabilizers more effective

C. changes in the tax rates

D. the existing unemployment insurance program

E. all of the above are examples of discretionary fiscal policy

3. which statement is true?

A. the U.S. national debt is almost as large as U.S. GDP.

B. the national debt will have to be paid off eventually

C. 75% of the current national debt is owned by foreigners

D. All of these statements are true

E. none of these statements are true

4. The most valid arguement against the size of the national debt is that it

A. will ruin the nation when we have to pay it back

B. is owed almost entirely to foreigners

C. leaves future generations with less plant and equipment than would be left had there been a smaller debt.

D. will bankrupt the nation because there is a limit as to hwo much we can borrow.

E. all of the above are correct.

5. The U.S national debt

A. only began in world war 2

B. has been paid off numerous times during our nation

C. extends back to the revolutionary war and has never been 100% paid off

D. will bankrupt our children and grandchildren

E. has grown only slightly during the Bush Jr. administration.

1) A

2) D

3) C

4) B

5 )A

as told by my teacher.........

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