Fiscal Policy: Spending Answers

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

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.

Which of the following statements most accurately describes the federal government and its employees?

Revenue and expenditures are sitting on a balance at the same level.

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

What is the main goal in creating the federal budget?

Gino is writing a paper about the effects of fiscal policies on the economy. Gino is describing a fiscal policy that aims to improve inflation.How does the policy that Gino is describing most likely affect interest rates and unemployment?

"Meeting the spending targets in this budget meant some very difficult choices."President Barack Obama,2012 Budget Message of the President

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.