Fiscal Policy (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is a budget deficit?
What is a budget deficit?
When govt spends more than it receives
What is the primary method Australia uses to finance budget deficits?
What is the primary method Australia uses to finance budget deficits?
Borrowing from domestic private sector
How does the competitive tender system for Treasury Bonds work?
How does the competitive tender system for Treasury Bonds work?
Govt accepts lowest interest rates first
What is the crowding out effect?
What is the crowding out effect?
Govt borrowing raises rates, crowds out pvt
When is the crowding out effect minimal?
When is the crowding out effect minimal?
During recessions
How did overseas holdings of Australian govt securities change from 2012 to 2022?
How did overseas holdings of Australian govt securities change from 2012 to 2022?
Declined from 76% to 45%
Why has Australia avoided monetary financing since 1982?
Why has Australia avoided monetary financing since 1982?
Inflation risk & policy independence
Do asset sales reduce the underlying cash deficit?
Do asset sales reduce the underlying cash deficit?
No, budget calculations adjust for them
What was the Future Fund valued at by 2023?
What was the Future Fund valued at by 2023?
USD 251 billion
What is the key difference between public sector debt and foreign debt?
What is the key difference between public sector debt and foreign debt?
Foreign debt includes private borrowing