Government Spending and Debt

What is a deficit?

• A type of tax

• A shortfall of money in a given period

• A government surplus

• An excess of money in a given period

What is a surplus?

• A shortfall of money in a given period

• A government deficit

• A type of tax

• An excess of money in a given period

How do governments usually borrow money?

• By selling securities

• By printing more money

• By applying for a loan from a bank

• By increasing taxes

What is a savings bond?

• A type of tax

• A government surplus

• A loan from a bank

• An investment that can be cashed out with interest

Who are the big holders of government debt in most countries?

• Foreign governments

• Pension funds

• Charities

• Banks

What is the debt-to-GDP ratio?

• The ratio between a country's imports and exports

• The ratio between a country's tax revenue and its spending

• The ratio between a country's government debt and its gross domestic product

• The ratio between a country's savings and investments

What is GDP?

• Gross Domestic Payment

• General Domestic Policy

• Government Debt Payment

• Gross Domestic Product

What is mandatory spending?

• Spending that lawmakers have flexibility in determining

• Spending on interest on debt

• Spending that the law says is owed

• Spending on military

What is an example of an entitlement in the United States?

• Education grants

• Infrastructure projects

• Social Security

• Military spending

What is discretionary spending?

• Spending that the law says is owed

• Spending on interest on debt

• Spending that lawmakers have flexibility in determining

• Spending on entitlements