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Question 16 In recent years, the growth in foreign-owned debt has a. Substantially weakened the U.S. economy b. Helped the U.S. economy by keeping the supply of loanable funds higher than it would be otherwise c. Harmed the U.S. economy by driving up the cost of borrowing d. Harmed the U.S. economy by sending jobs overseas e. Not affected the U.S. economy 5 points Question 17 When U.S. housing prices declined prior to and during the Great Recession, it caused aggregate demand to decrease because a. The government raised interest rates to prevent inflation b. Household wealth decreased, causing a decline in consumer spending c. The U.S. population and labor force declined abruptly d. The government refused to allow the money supply to increase e. The government raised taxes and decreased spending 5 points Question 18 What is the most appropriate way to compare budget deficits/surpluses across time a. Using nominal dollar figures b. Using real dollar figures c. Calculating figures as a portion of gross domestic product (GDP) d. Using per capita dollar figures e. Budget figures cannot be compared across time 5 points Question 19 One proposed solution to the funding problems faced by Social Security and Medicare is to implement means-testing, so that only those with limited retirement funds would qualify for the government benefits. An unintended consequence of such a requirement may be a. An increase in private savings b. A decrease in the incentive to save for retirement c. Improved solvency for Social Security and Medicare d. Fewer elderly people receiving benefits e. That some workers paying into the programs never receive any benefits from the program 5 points Question 20 The goal of contractionary fiscal policy is to shift the ____________ curve to the ___________ a. Aggregate demand; left b. Aggregate demand; right c. Short-run aggregate supply; right d. Short-run aggregate supply; left e. Long-run aggregate supply; left

Answer 1