5.3 Fiscal Policy: Spending Answers

Which statement best describes the likely effects of an expansionary fiscal policy?

A graph shows the U S Government and Expenditures from 1980 to 2010. The money spent and money received generally follow the same trend, but around 2008, the amount of money spent increased and money received decreased.

A pie chart titled Federal Government Spending in 2010 is shown. Education and health and human services has the largest piece, and veteran apostrophe s affairs has the smallest piece.

A graph shows the Total Public Debt of the U S Government from 1993 to 2013 with Year on the x-axis and Total public debt in trillions of U S dollars on the y-axis, from 0 to 20 in increments of 5. The debt stays constant from 1993 to 2001 and then steadily increases.

A plan for spending money that balances income with spending and shows how money will be spent is

Which of these effects of expansionary spending would a government most want to avoid?

A flow chart shows an aspect of fiscal policy. Money goes from the government, to household, and to firms.

When governments inject money into the economy, which of the following are their goals? Check all that apply.reducing unemploymentimproving economic stabilityencouraging competitionlaying off striking workersimproving production

A graph titled Total U S Government Spending as Percentage of G D P from 1990-2012 has year on the x-axis and percentage of G D P on the y-axis, from 15 to 30 percent in increments of 5. The percentage of G D P is lowest at 18 percent in 2001 and highest at 25 percent in 2009.

A diagram shows that taxes go into the government, which then go into spending.