Fiscal Policy: Spending Answers

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?

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

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.

Spending that is required by law is known as

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

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

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

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

Revenue and expenditures are sitting on a balance. Expenditures are lower than revenue.