In recent years, net interest on the national debt paid by the federal government as a percentage of GDP is equal to approximately:
a. 1 to 3 percent.
b. 5 to 9 percent.
c. 10 to 14 percent.
d. 15 to 19 percent.
e. 20-25 percent.
QUESTION 2Which of the following transactions would be excluded in the capital account?
a. A Japanese citizen purchases a U.S. Treasury bill.
b. A Japanese citizen purchases an office building in Manhattan.
c. A U.S. citizen purchases a share of stock from a Japanese company.
d. An American purchases a Toyota.
QUESTION 3An increase in the wealth of households, other things remaining the same, can result in ____ the consumption function.
a. no effect on
b. an upward shift in
c. a movement to the left along
d. a downward shift of
QUESTION 4Which of the following portions of the national debt impose a net interest burden on the federal government?
a. treasury bonds held by government agencies
b. treasury bonds held by private investors
c. treasury bonds held by the Federal Reserve system
d. treasury bonds held in the Social Security Trust Fund
QUESTION 5Persistent negative current account balances will lead to ____.
a. c and d
b. d and e
c. budget deficits
d. appreciation of foreign currency
e. depreciation of domestic currency
QUESTION 6Which of the following events would produce an upward shift in the consumption function, other things being equal?
a. An increase in consumer wealth.
b. A decrease in consumer wealth.
c. A decrease in autonomous consumption.
d. None of these.
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