Fiscal Policy: Spending Answers

17 verified answers1 views
5

Which statements accurately describe debts and deficits? Select all that apply.The deficit is the amount a government spends above what it brings in.The government’s debt represents how much it owes from borrowing to pay for expenditures.Deficits cause debt to decrease.Deficits cause debt to increase.Debt is free and has few consequences for the government.Debt requires a government to pay back more than it has borrowed.

A
The deficit is the amount a government spends above what it brings in.
B
The government’s debt represents how much it owes from borrowing to pay for expenditures.
C
Deficits cause debt to decrease.
D
Deficits cause debt to increase.
E
Debt is free and has few consequences for the government.
F
Debt requires a government to pay back more than it has borrowed.
6

Based on the graph, what are the two highest spending priorities for the federal government?

A
Social Security and Social Programs
B
Treasury and Labor
C
Defense and Other
D
International Assistance and Veterans’ Affairs
7

How does this graph show the importance of government spending to millions of Americans?

A
State and local governments get the most money.
B
The largest portion is spent on national defense.
C
The largest portion is in the form of direct payments to workers and citizens.
D
The government’s payments all take the form of grants.
10

Determine whether these examples show government spending that is focused more on improving the economy or on meeting social needs. Use the drop-down menus to complete the statements.

Answers:
When governments spend to improve education or health care, they are focusing more on .:social needs
When governments spend to improve the unemployment rate or increase GDP, they are focusing more on .:economic needs
11

Which statements accurately describe debts and deficits? Select all that apply.The deficit is the amount a government spends above what it brings in.The government’s debt represents how much it owes from borrowing to pay for expenditures.Deficits cause debt to decrease.Deficits cause debt to increase.Debt is free and has few consequences for the government.Debt requires a government to pay back more than it has borrowed.

A
The deficit is the amount a government spends above what it brings in.
B
The government’s debt represents how much it owes from borrowing to pay for expenditures.
C
Deficits cause debt to decrease.
D
Deficits cause debt to increase.
E
Debt is free and has few consequences for the government.
F
Debt requires a government to pay back more than it has borrowed.
12

Based on the graph, what are the two highest spending priorities for the federal government?

A
Social Security and Social Programs
B
Treasury and Labor
C
Defense and Other
D
International Assistance and Veterans’ Affairs
13

Choose the correct answers from the drop-down menus to explain the impact of fiscal policies on the economy.

Answers:
A contractionary fiscal policy can inflation and unemployment and interest rates.:reduce
A contractionary fiscal policy can inflation and unemployment and interest rates.:increase
An expansionary fiscal policy can the number of jobs and can inflation and reduce interest rates.:increase
An expansionary fiscal policy can the number of jobs and can inflation and reduce interest rates.:increase
14

Choose the correct answers from the drop-down menus to explain the impact of fiscal policies on the economy.

Answers:
A contractionary fiscal policy can inflation and unemployment and interest rates.:reduce
A contractionary fiscal policy can inflation and unemployment and interest rates.:increase
An expansionary fiscal policy can the number of jobs and can inflation and reduce interest rates.:increase
An expansionary fiscal policy can the number of jobs and can inflation and reduce interest rates.:increase
15

✔ increasereduce

A
✔ increase
B
reduce
16

✔ increasereduce

A
✔ increase
B
reduce
17

✔ increaseX reduce

A
✔ increase
B
X reduce

Did you find these answers helpful?

Fiscal Policy: Spending Answers…