Fiscal Policy: Spending

Question 1

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

Question 2

Spending that is required by law is known as

Revolt · Accepted Answer

mandatory spending.

Question 3

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

Revolt · Accepted Answer

It can reduce interest rates and unemployment, but increase inflation.

Question 4

When revenues are higher than expenditures in a budget, that budget

Revolt · Accepted Answer

shows a surplus.

Question 5

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?

Revolt · Accepted Answer

The policy would most likely increase interest rates and unemployment.

Question 6

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

Revolt · Accepted Answer

a budget deficit

Question 7

What is the main goal in creating the federal budget?

Revolt · Accepted Answer

deciding how to manage the government’s tax revenue and expenditures

Question 8

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

Revolt · Accepted Answer

Millions of Americans work for the federal government.

Question 9

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.

Revolt · Accepted Answer

one quarter of GDP.

Question 10

What does deficit spending require a government to do?

Revolt · Accepted Answer

take on debt

Fiscal Policy: Spending Answers

More from this Course

TRY EDGENUITY HACKS