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Fiscal Policy: Spending Answers

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21
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What is the main goal in creating the federal budget?

A
managing businesses and increasing spending on all programs
B
deciding how to manage the government’s tax revenue and expenditures
C
finding a way to allow the economy to run on its own
D
finding a way to slow down rapid economic growth
22
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What does deficit spending require a government to do?

A
lay off workers
B
cut taxes
C
take on debt
D
hire more workers
23

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

A
Millions of Americans work for the federal government.
B
The federal government is not allowed to hire employees.
C
The majority of Americans are employed by the federal government.
D
The number of federal employees is too small to affect government spending.
24

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.

Question illustration
A
1980 to 1990
B
1980 to 2000
C
1990 to 2000
D
2000 to 2010
25

When a government creates a budget, it is seeking a way to

A
spend as much revenue as possible.
B
cut spending to a bare minimum.
C
return as much money to taxpayers as possible.
D
allocate money to programs and projects.
26

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

A
deciding which country to borrow from to finance spending
B
deciding what would be funded and what would be cut
C
deciding how to keep interest rates low on the national debt
D
deciding how much to increase tax rates
27

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

A
a surplus.
B
an expenditure.
C
a budget.
D
a deficit.

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