The Federal Budget

Multiple Choice

The Federal Reserve announced a quarter-point cut to its key interest rate Wednesday, an effort to keep what appears to be a steady but cooling economy stable. This would be an example of:

• Fiscal Policy

• Monetary Policy

• Both

Multiple Choice

The potential for major changes to tax, spending and immigration policies under Trump is another reason for the Fed to take a more cautious approach. Former Fed economists say the central bank’s staff has likely begun factoring the effects of Trump’s proposed corporate tax cuts into their economic analyses, but not his proposed tariffs or deportations, because those two policies are too difficult to assess without details. This would be an example of:

• Fiscal Policy

• Monetary Policy

• Both

Multiple Choice

A government shutdown could have spelled delays for holiday travelers this year but Congress averted a crisis on Saturday morning after President Joe Biden signed a bill into law that will fund the government through current levels until March 14. This would be an example of:

• Fiscal Policy

• Monetary Policy

• Both

Multiple Choice

How much money has the US government spent so far in the 2025 fiscal year?

• 1.25 trillion

• 4.3 billion

• 2.8 trillion

• 5.6 trillion

Multiple Choice

What entitlement program has the United States spent the most amount of money on in 2025?

• Medicare

• Medicaid

• Social Security

• Net Interest

Multiple Choice

Which government agency has the United States spent the most amount of money on in 2025?

• Treasury Department

• Defense Department

• Social Security Administration

• Health & Human Services

Multiple Choice

What is the current national debt?

• 36.22 trillion

• 28.4 trillion

• 2.8 trillion

• 15.99 trillion

Multiple Choice

On February 9, 2016, President Barack Obama released his budget proposal for the 2017 fiscal year. Facing a Republican Congress, many declared the plan “dead on arrival.” Among the cited issues was Obama's request for $582.7 billion in discretionary spending for defense, which many Republicans believed was not enough. Which of the following most accurately explains the interaction between the president and the Congress regarding the defense budget?

• The Congress has the enumerated power to raise revenue, but it is forced to work with the president because the president has the power to determine spending for each department in the upcoming fiscal year.

• The president can create a budget for defense spending, but Congress has the power to execute laws and operate the government, which can affect how much money is actually spent.

• Congress passes a budget for the entire federal government, including defense, but it must consider the president's proposal because the president may veto the bill.

• The president introduces a specific budget bill for defense spending, but Congress uses its power of legislative oversight to set up a negotiation process with the president.