9
QuizMultiple Choice

Fiscal Policy: Spending

Question 9 • IL-Economics

What is the main goal in creating the federal budget?

Answer
A
managing businesses and increasing spending on all programs
B
deciding how to manage the government’s tax revenue and expenditures
C
finding a way to allow the economy to run on its own
D
finding a way to slow down rapid economic growth

Explanation

The federal budget is the government’s plan for how much money it expects to collect in taxes and how it will spend that money. Its main goal is to manage tax revenue and expenditures, not to manage businesses or make the economy run without government involvement. Therefore, the correct choice is deciding how to manage the government’s tax revenue and expenditures.

AI-written and checked against the verified answer.

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