H. Federal government spending programs, such as for Social Security payments, where outlays are difficult for legislators to control, are classified in the:

Select one:

a.on-budget category.

b.off-budget category.

c.unmanaged outlays category.

d.nondiscretionary spending category.

I. Government borrowing is most closely associated with a:

Select one:

a.deficit budget.

b.surplus budget.

c.balanced budget.

d.no growth budget.

J. Influencing the levels of aggregate output and employment or prices through changes in federal government expenditures and/or taxes is known as:

Select one:

a.fiscal policy.

b.physical policy.

c.monetary policy.

d.the classical approach to economic stabilization.

K. John pays a local income tax of 5 percent, regardless of the size of his income, and a sales tax of 5 percent on his purchases, regardless of the value of his purchases. The income tax:

Select one:

a.and the sales tax are both proportional.

b.is proportional and the sales tax is regressive.

c.is regressive and the sales tax is proportional.

d.none of these answers are correct.

L.

On which function does the federal government spend the most money?

Select one:

a.Net interest.

b.Social Security and Medicare.

c.Education.

d.Energy, transportation, and environment.