Section 3 Flashcards
(9 cards)
0
Q
Budget deficit
A
Occurs when the government spends more than it takes in.
1
Q
Budget surplus
A
Occurs when the government takes in more than it spends.
2
Q
Deficit spending
A
Is a government practice of spending more than it takes in for a specific budget year.
3
Q
National debt
A
Is the money that the government owes.
4
Q
Treasury bills
A
Mature in less than a year.
5
Q
Treasury notes
A
Mature between two and ten years.
6
Q
Treasury bonds
A
Mature in 30 years.
7
Q
Trust funds
A
Are held for specific purposes to be expended at a future date.
8
Q
Crowding-out effect
A
Is the result of the governments outbidding private bond interest rates.
