7
QuizMultiple Choice

Fiscal Policy: Spending

Question 7 • IL-Economics

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

Answer
d
deciding which country to borrow from to finance spending
d
deciding what would be funded and what would be cut
d
deciding how to keep interest rates low on the national debt
d
deciding how much to increase tax rates

Explanation

Meeting spending targets requires choices about how to allocate limited budget funds. That means deciding which programs and priorities would receive funding and which would be reduced or cut. The quote does not specifically point to borrowing from another country, managing interest rates, or raising tax rates.

AI-written and checked against the verified answer.

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