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A decrease in federal defense spending in the US is likely to cause?
layoffs at a large defense contracting company
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
What three federal actions decrease the money supply?
Three federal actions that decrease the money supply include raising the federal funds rate, which makes borrowing more expensive and reduces spending; selling government securities in the open market, which withdraws cash from the banking system; and increasing reserve requirements for banks, which limits the amount of money they can lend. These measures are typically employed to combat inflation and stabilize the economy.
A tool often used by the Federal Reserve to stimulate borrowing and spending is to?
decrease the discount rate to banks-decrease the discount rate to banks.(:
When the Federal government uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
A decrease in federal defense spending in the US is likely to cause?
layoffs at a large defense contracting company
Why is it difficult for the federal government to increase or decrease spending?
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
What is the largest area of federal spending today?
The largest area of federal spending today is for social security. This is followed by Medicare, and Medicaid. Next in line is defense spending.
What did not contribute to the federal budget surplus in the 1990s?
a decrease in government spending
What three federal actions decrease the money supply?
Three federal actions that decrease the money supply include raising the federal funds rate, which makes borrowing more expensive and reduces spending; selling government securities in the open market, which withdraws cash from the banking system; and increasing reserve requirements for banks, which limits the amount of money they can lend. These measures are typically employed to combat inflation and stabilize the economy.
Something that did not contribute to record federal budget deficits in the early 1980s was?
cuts in defense spending
A tool often used by the Federal Reserve to stimulate borrowing and spending is to?
decrease the discount rate to banks-decrease the discount rate to banks.(:
When the Federal government uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
When the federal governent uses taxation and spending actions to stimulate the economy it is conducting?
fiscal policy
What are the two ways the federal government could respond to an increase in the economy?
raise income taxes and decrease government spending
What are the twelve categories of expenditures in the federal budget?
The four main spending categories that the federal government spends money on are Medicare, Medicaid, Social Security, and national defense.
What actions could the Federal Reserve take to decrease the money supply?
The Federal Reserve could decrease the money supply by raising interest rates, selling government securities, or increasing reserve requirements for banks.
