Define federal budget deficit

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Reference no: EM13174141

1. The federal budget deficit has been over 30 percent of GDP since the early 1980s.

A)True

B)False

2. To finance a federal budget deficit, the U.S. Treasury borrows by selling:

A) Treasury Bills

B) Treasury Notes

C) Treasury Bonds

D) All of the Above

3. An increase in fiscal deficit spending financed by borrowing will not affect the national debt but decrease interest rates.

A) True

B) False

4. Internal ownership of the debt refers to the portion of the national debt owned by government agencies.

A)True

B)False

Reference no: EM13174141

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