Question

8. What is a Treasury note?

a government bond that is repaid in two to ten years
a government bond that can be issued for as long as 30 years
a government bond that is repaid in three months to a year
all the money the federal government owes to bondholders


9. Which of the following did not contribute to the federal budget surplus in the 1990s?

a strong economy and low unemployment
a decrease in government spending
tax increases resulted in more federal revenue
new budget procedures to help control government spending


11. Creating more money could increase the demand for goods and services _____.

but also risk raising the national debt
and also prevent inflation
and also cause the crowding-out effect
but also risk causing the dollar to lose its value




12. Which of the following statements is a fundamental part of Keynesian economics?

The federal government should have a balanced budget every year to protect economic growth.

The government should reduce taxes to promote economic growth by increasing aggregate supply.

The economy will only reach equilibrium and prosperity through the self-regulation of the free market.

The government can use deficit spending to increase aggregate demand and pull the economy out of recession.

Answer 1

A treasury note is a 'note' issued by the government to be used as money. In this case, a treasury note is also a government bond that needs to be repaid within 2 to 10 years.

A budget surplus is the opposite of a budget deficit. It means that the government's income rate is higher than it's spending rate. 

Around the time of the American revolution, when the colonies started making their own money (and they made ALOT of it) money began losing its value, and prices started inflating.

9. A.  a government bond that is repaid in two to ten years
11. D. but also risk the dollar losing its value

Answer 2

Answer: the correct sequence is 8.- a government bond that is repaid in two to ten years  9.-a strong economy and low unemployment  11.-but also risk causing the dollar to lose its value  12.-The government can use deficit spending to increase aggregate demand and pull the economy out of recession.

Explanation: this explains more the answer to question 9: The United States entered recession in 1990, which lasted 8 months through March 1991.