Fiscal Policy: Spending Answers
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1
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What does deficit spending require a government to do?
l
lay off workersc
cut taxest
take on debth
hire more workers2
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When revenues are higher than expenditures in a budget, that budget
A
shows a deficit.B
is in balance.C
must be discarded.D
shows a surplus.3
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.
l
labor and transportationv
veterans' affairse
education/health and human servicesi
international assistance4
What is the main goal in creating the federal budget?
A
managing businesses and increasing spending on all programsB
deciding how to manage the government’s tax revenue and expendituresC
finding a way to allow the economy to run on its ownD
finding a way to slow down rapid economic growthDid you find these answers helpful?
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