Quiz 16

The amount by which expenditures are greater than revenues is known as ________.

Deficit

Which type of program is Medicare?

Entitlement

All policies serve a beneficial purpose for everyone.

False

Entitlement (or mandatory) spending is _________.

Formula-based spending that goes to individual citizens

Keynesian economic theory calls for _________ to counter _________.

Increased government spending; economic downturns

U.S. monetary policy involves ______ and _______.

Interest Rates; Money Supply

____________ is primarily associated with programs tied to age, which continue to grow in obligation.

Mandatory Spending

Which of the following is used in monetary policy to affect the overall economy?

Money Supply

How is Social Security funded?

Payroll Taxes

By raising or lowering banks' interest rates, the Federal Reserve chair has the ability to __________ or ___________.

Reduce Inflation; Stimulate Growth

Supply-side proponents advocate for _________ and ______ to spur economic growth.

Reducing Taxes; Reducing Regulation

The Great Depression resulted in a set of policies known as a ____________.

Social Safety Net

Which of the following is an example of a public policy outcome?

Successfully lowering cost of health insurance for targeted groups.

Social Security and Medicare are notable for their assistance to which group?

The Elderly

What is the goal of fiscal policy?

To have a balanced federal budget.

Taxable income is distorted by tax credits, deductions, and government incentives.

True