Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt?

Cut interest rates

Decrease spending

Lower taxes

Raise reserve requirements

Question

Imagine the federal government has a national debt of $10.2 trillion. Congress's budget for the coming year includes a spending projection of $4.2 billion. Tax revenue projects $3.8 billion. Which fiscal policy should Congress adopt to avoid increasing the national debt? 

 Cut interest rates 

 Decrease spending 

 Lower taxes 

 Raise reserve requirements

anonymous · Answer

If the United States falls into a recession, which action would the Federal Reserve take to encourage employment? 

 Buy government securities 

 Increase reserve requirements 

 Raise federal funds and prime rates 

 Sell government securities