Question

5 Multiple choice questions... please answer all of them.

15.

The accumulation of years of spending more money than is collected in revenues over several years creates a budget (5 points)

	debt
	deficit
	surplus
	reversal

16.

How does the U.S. government promote economic growth? (5 points)

	By decreasing taxes and decreasing spending
	By decreasing taxes and increasing spending
	By increasing taxes and decreasing spending
	By increasing taxes and increasing spending

17.

The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are starting to rise throughout the economy. What should Lilliput's government do to prevent inflation from happening? (5 points)

	Lower the income tax, which gives citizens less money to spend, and buy services from civilian-owned businesses, which creates more jobs.
	Lower the income tax, which gives citizens more money to spend, and buy more services from civilian-owned businesses, which creates more jobs.
	Raise the income tax, which gives citizens less money to spend, and stop buying services from civilian-owned businesses, which eliminates jobs.
	Raise the income tax, which gives citizens less money to spend, and buy more services from civilian-owned businesses, which creates more jobs.

18.

The government increases taxes. What might be a reason for this change in fiscal policy? (5 points)

	A deficit due to improving nationwide public transportation
	A deficit due to more monies flowing in from investors
	A surplus due to greater amounts of income from exports
	A surplus due to more government spending on building roads

19.

Which of these is required to balance the budget for the year? (5 points)

	Revenue equal to spending
	Revenue greater than spending
	Revenue less than spending
	No national debt