The Office of Management and Budget
is responsible for deciding how much money each government agency receives in the budget
What does "lender or last resort" mean with respect to the Federal Reserve
it will lend money to a bank in a financial emergency
All of the following are reasons why it is difficult to put balanced fiscal policy into practice EXCEPT
the need for discretionary policy
What is an entitlement
a social welfare program providing benefits to people who meet certain elegibility requirements
What was one reason the US gov't started the Federal Reserve system?
To provide consumers with access to funds for business expansion
Supporters of supply-side economics believe that
taxes have a strong negative influence on economic output
What type of policy does the Federal Reserve use to counteract an expansion causing high intrest rates?
tight money policy
The national debt rose during Ronald Reagan's term as president for all of the following reasons EXCEPT
the costs of running a war
Which of the following is one way the Federal Reserve Bank serves the government?
selling government securities
What do Social Security taxes pay for?
benefits to older citizen, surviving family memebers of wage earners, and people with certain disabilities
What is a major difference between an operating budget and a capital budget?
an operating budget is for day-to-day expenses; a capital budget is for investment spending
All of teh following are problems associated with high national debt except that it
makes investing through treausry bonds, notes, and bills very risky
All of the following are characteristics of classical economics EXCEPT
a significant role for gov't in running the economy
Which of the following is one reason teh federal gov't collects income taxes as a person earns
so that the gov't can pay bills as they come due
An accurate statement about achieving a balanced budget would be that
most states require a balanced budget for state spending