Fiscal Policy Answers
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21
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Look at a portion of a sample paycheck:
A
payrollB
propertyC
incomeD
excise22
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Based on the taxing and spending cycle, how will changing expenditures affect taxes collected by the government?
A
Spending less will help lower prices, leading to an increase in tax revenue for the government.B
Spending less will reduce services, leading to a reduction in tax revenue for the government.C
Spending more will boost prices, leading to an increase in tax revenue for the government.D
Spending more will increase services, leading to a reduction in tax revenue for the government.23
Which best describes a way in which the government might respond to rising threats to national security through fiscal policy?
A
sending troops overseasB
passing an excise tax on gasolineC
appointing a new Secretary of Homeland SecurityD
increasing military spending24
Revenue is the amount of money that
A
the government spends on defense.B
the government collects from taxes or borrowing.C
the government owes in debt.D
the government uses to provide social services.25
[BLANK]
A
expenditureB
revenueC
budgetDid you find these answers helpful?
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