What percentage of us net public debt is held by foreign

Question

1. Expressing the U.S. federal budget deficit as a percentage of GDP results in inflation-adjusted revenue and expenditure numbers.

• helps people to understand the size of the deficit relative to the size of the economy.
• was useful through the 1980s, but is no longer helpful because both the deficit and real Gross Domestic Product (GDP) have grown so large.
• is only useful if the budget deficit is rising at an annual rate of more than 4%.

2. According to the textbook, approximately what percentage of U.S. net public debt is held by foreign residents?

• 800%
• 90%
• 20%
• 50%

3. The amount of funds that the Social Security system has loaned the federal government is

• not included in the gross public debt.
• excluded from the net public debt.
• included in the net public debt.
• added to the gross public debt to calculate the net public debt.

4. Which is the fastest growing component of the federal government budget?

• Spending to improve and expand the nation's infrastructure
• Spending on entitlements
• Spending on the military and the war on terrorism
• Spending to improve the nation's schools

5. Money functions as a(n)

• medium of exchange.
• store of value.
• unit of account.
• All of the above