Unit 5 Test Study Guide

___________ Spending is the amount of money the government HAS to spend

In a recession, the government will stimulate the economy by:

• Raising Taxes

• Lowering Taxes

• Increasing Spending

• Decreasing Spending

When the economy is growing too fast, the government will try to slow it by:

• Raising Taxes

• Lowering Taxes

• Increasing Spending

• Decreasing Spending

Who is in control of the Fiscal Policy?

• The Federal Reserve

• The President and Congress

• The Supreme Court

• Governor

A _________ tax is when those with a higher income will pay a higher tax rate.

• Progressive

• Regressive

A _________ tax is when everyone pays the same percentage in taxes.

• Progressive

• Regressive

Which of the following are examples of other sources of federal revenue?

• Non-tax revenue (Fees and USPS)

• Tariffs

• Excise Taxes

• Mandatory Spending

_______ spending is that part of the budget that can change with who is President/in Congress.

Examples of Mandatory Spending are:

• Military

• Social Security

• Medicare

• Medicaid

Who does the government borrow money from during a deficit?

• U.S. Individuals

• The Fed

• Other Countries

• The President