In which situation is a government most likely to allow for spending during a deficit?A.A period when local taxes are very highB.A period of very low economic growthC.A period of very high economic growthD.A period when state taxes are very high

Which situation is most likely to result in a government having a budget deficit for a year?A.A government decides to build an expensive new highway system while also lowering taxes.B.A government cuts funding to income assistance programs for veterans and the elderly.C.A government decides that all its spending programs will be discretionary instead of mandatory.D.A government raises taxes on corporations in an effort to quickly pay off its entire national debt.SUBMITarrow_backPREVIOUS

If a government spends less money than it brings in through taxes in one year, that government has a _____.A.mandatory budgetB.budget surplusC.budget deficitD.discretionary budget

Which fiscal policy would most likely result in the largest budget surplus?A.Low taxation and low spendingB.Low taxation and high spendingC.High taxation and low spendingD.High taxation and high spending

Which situation is most likely to result in a government having a budget surplus for a year?A.A government is forced to spend extra money to help its citizens recover after a natural disaster.B.A government begins providing health care to all citizens using tax money in the federal budget.C.A government shuts down an expensive defense program while increasing taxes on corporations.D.A government lowers taxes on businesses while keeping all its spending at the same level.

When would the government most likely decrease its spending?A.When interest rates have decreasedB.When tax revenues have decreasedC.When consumer spending has decreasedD.When unemployment has decreased