Deficit & Debt
Flashcard
•
Social Studies
•
12th Grade
•
Practice Problem
•
Hard
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1.
FLASHCARD QUESTION
Front
Which of the following is NOT a primary tool for the government's discretionary fiscal policy?
government spending,
taxation changes
Back
open market operations
2.
FLASHCARD QUESTION
Front
The government utilizes a contractionary fiscal policy to
Back
deal with inflationary pressures
3.
FLASHCARD QUESTION
Front
To implement an expansionary fiscal policy the government will
Back
decrease taxes and increase spending
4.
FLASHCARD QUESTION
Front
Expansionary fiscal policies lead to ___________________ spending.
Back
deficit
5.
FLASHCARD QUESTION
Front
The government borrows money to cover any deficits it runs by
Back
issuing bonds
6.
FLASHCARD QUESTION
Front
A deficit is
Back
when the government spends more than it collects in taxes and borrows to cover the difference.
7.
FLASHCARD QUESTION
Front
The government can use a _________________ to reduce its debt.
Back
surplus
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