AnswersIL-EconomicsFiscal Policy: Spending

Fiscal Policy: Spending Answers

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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

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
11

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.
14

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.

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