Government Spending
This type of federal spending is decided each year through the appropriations process.
What is Discretionary Spending?
These are the three primary sources of federal government revenue.
What are income taxes, corporate taxes, and payroll taxes?
This type of tax is placed on specific goods such as gasoline.
What is an excise tax?
This institution serves as the "Lender of Last Resort" for U.S. Banks.
What is the Federal Reserve?
This policy aims to stimulate economic growth during a slowdown.
What is expansionary fiscal policy?
This type of spending is set by existing laws and includes programs such as Social Security
What is Mandatory Spending?
This tax is collected on individual or household earnings.
What is income tax?
The U.S. income tax system works this way: the more you earn, the more you pay.
What is a progressive tax system?
This banking system requires banks to keep some deposits and loan out the rest.
What is fractional reserve banking?
This policy is used to reduce inflation or address budget deficits.
What is contractionary fiscal policy?
COVID-19 Relief Bills & Infrastructure Projects are examples of this economic tool.
What is Fiscal Policy?
This tax is paid to local governments on land or housing.
What is property tax?
Property Tax, Estate Tax, Inheritance Tax, and Gift Tax fall under this tax category.
What is a wealth tax?
The Fed's dual mandate focuses on these two economic goals.
What are maximum employment and stable prices?
Direct cash transfers to households are most likely to quickly affect this.
What is consumer spending?
One reason expanding government spending may fail during a recession is this workforce issue.
What are unemployed workers lacking skills for government projects?
The U.S. national debt continues to grow mainly because of this.
What are persistent budget deficits?
True or False: Donating to a nonprofit organization can lower your taxable income.
What is true?
When the Fed raises interest rates, aggregate demand usually does this.
What is decrease?
Fiscal policy refers to the use of government spending and this to influence the economy.
What are taxes?
If government spending continues after the economy recovers, this economic problem may occur.
What are increased deficits and inflation?
Voters' resistance to these two actions makes reducing the federal deficit difficult.
What are cutting spending and raising taxes?
This is the annual deadline for filing federal income taxes in the United States.
What is April 15th?
This monetary policy tool involves buying or selling assets to banks.
What are open market operations?
Natural disasters that disrupt production are known as this type of shock.
What is a supply shock?