Government and the Economy

Question 1

An important difference between the federal government’s budget and a personal budget is that only the government’s budget involves __________.

Revolt · Accepted Answer

making spending decisions in the national interest

Question 2

Government spending that Congress makes choices about during the budget process is called __________ spending.

Revolt · Accepted Answer

discretionary

Question 3

A document showing the government’s promise to pay back the money it borrowed plus interest is a __________.

Revolt · Accepted Answer

bond

Question 4

All the money the government owes to its bondholders is called the __________.

Revolt · Accepted Answer

national debt

Question 5

Duties of Congress in the budget process include all of the following EXCEPT:

Revolt · Accepted Answer

submitting a proposed budget

Question 6

Congress and the president work to have the new budget enacted by the end of September so __________.

Revolt · Accepted Answer

the budget is ready for the start of the new fiscal year on October 1

Question 7

Contractionary fiscal policy is used to __________.

Revolt · Accepted Answer

decrease the amount of money in the economy

Question 8

A Congressional budget resolution provides __________.

Revolt · Accepted Answer

a road map to use when creating actual spending bills

Question 9

Both the Federal Trade Commission and the US Justice Department work to prevent or eliminate __________.

Revolt · Accepted Answer

illegal business practices

Question 10

What is the goal of contractionary fiscal policy?

Revolt · Accepted Answer

reduce inflation

Government and the Economy Answers