Fiscal Policy: Spending

Question 1

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

Revolt · Accepted Answer

government spending to strengthen the economy

Question 2

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 3

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.

Revolt · Accepted Answer

2000 to 2010

Question 4

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 5

Revenue and expenditures are sitting on a balance at the same level.

Revolt · Accepted Answer

balanced

Question 6

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

Revolt · Accepted Answer

reducing unemployment; improving economic stability; encouraging competition; improving production

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

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 9

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

Revolt · Accepted Answer

deciding what would be funded and what would be cut

Question 10

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.

Revolt · Accepted Answer

Lines seldom overlap showing a mostly unbalanced budget.

Fiscal Policy: Spending Answers

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