Fiscal Policy - Spending

When revenues are higher than expenditures in a budget, that budget

• is in balance.
• must be discarded.
• shows a surplus.

A plan for spending money that balances income with spending and shows how money will be spent is

• surplus.
• an expenditure.
• a budget.

Which of the following words can best be applied to this budget?

• unbalanced
• balanced
• deficit

an obligation to pay something

• budget
• debt
• deficit

What does deficit spending require a government to do?

• cut taxes
• take on debt
• hire more workers

to distribute something among those who need or want it

• budget
• allocate
• debt

a plan that balances avalable resources and expenses

• deficit
• allocate
• budget

spending in excess of revenue that has to be financed with borrowed money

• debit
• deficit
• surplus

revenue in excess of spending

• expenditures
• surplus
• debt

The three types of Federal Government Spending are the following: 1. Mandatory 2. Discretionary 3. interest

• True
• False