PCI Chapter 5 Gov't and the Economy

type of loan that the borrower promises to pay back later with interest

• bond

• budget

• surplus

• national debt

when the government spends more money than it takes in

• budget deficit

• budget surplus

• fiscal policy

when the government takes in more money than it spends

• bond

• budget deficit

• budget surplus

• national debt

the money the federal government owes

• budget surplus

• fiscal policy

• national debt

decisions made by the government about taxes and spending

• bond

• budget deficit

• national debt

• fiscal policy

Employers take FICA taxes and _____________ taxes from employees' paychecks.

• income

• discretionary

• contractionary

A/An _________ policy is a fiscal policy that tries to help the economy grow.

• income

• mandatory

• contractionary

• expansionary

Raising taxes and spending less are two types of _______ fiscal policies the government uses.

• discretionary

• contractionary

• expansionary

The government's _____ spending budget is used to pay interest on the national debt and for entitlement programs like Social Security.

• income

• mandatory

• discretionary

• expansionary

The government's _____ spending budget pays the salaries of government workers and goes to things like education and disaster aid.

• income

• mandatory

• discretionary